Incredibly, after all this, Terry hung in there and put a contract on the second home of her choice. But the transaction didn't go smoothly. After making an offer of $110,000 on a $111,000 listing, the inspection revealed close to $10,000 worth of repairs needed including the replacement of an ancient furnace. A radon report also came back positive.

Terry wanted to know what to do. Katy told Terry that she couldn't advise her. Terry also learned that the home had been purchased only a year before, and some cosmetic improvements were added, but $16,000 was also added to the price of the price of the home. The agent had told her earlier that homes were appreciating at about 2.5 percent a year, yet could not explain why this home was worth so much more than other comparables in the area, particularly close to two highways and with a small lot.

"I was not asking her what I should offer/should have offered, because she said she wasn't allowed to be that specific. She couldn't say, either, whether 14k was an incredible gain for modest remodeling, in general, for one year ownership," wrote Terry. "It had been remodeled cosmetically, but no flooring was needed, and no plumbing or kitchen cabinets--just paint, floor sanding (1100-1800.00) a bathroom vanity, and knocking out a small bedroom wall/closing off a door. Why 16K more, and should they expect to get 14k over their purchase price in one year?"

Terry further complained, "When the radon results came back positive, and she knew it needed fixing, she didn't urge me to stick to my guns. She became irritable and flip, and said, "He's offering 700.00. You could offer him something more off the purchase price, but I don't think he'll take it."

When Terry and Katy met with the seller, Katy hinted to the seller that she didn't think the radon was a big deal. Consequently, the seller refused to negotiate the repairs, and insulted Terry with the comment that she must have a problem with trust.

Katy defended the seller and said the home was worth the negotiated price. At that point, Terry decided to back out of the contract, at a $700 loss. "Indeed I had lost all trust after that discussion---in her, in the buyer's agent system," wrote Terry. "You have to wonder how she didn't realize it would anger me, and later anger the seller too, when I explained to him it was a matter of mathematics only, and that refusal to pay radon expenses was simply the straw that finally collapsed the deal."

When the deal fell through, Katy presented an already drawn-up and signed release of representation form. She said, "I'm sure you want this as much as I do," At that point, I sorely did," wrote Terry. "Apparently, my money was good if I wanted the house, but I was not welcome if not."

Terry writes that the home is still available for sale, and she is still interested, but she feels burned. She is worried about being forced to pay Katy if she were to make another offer on the home. She is considering starting fresh with a new home search, but now questions whether or not she should use a "buyer's agent" again.

So what should Terry do? If you are an agent, please write your response to this story and what advice you have for Terry.