I would suggest re-evaluating your thought process. What you want from the house has no bearing on whether a counter-offer is a good idea. What you've put into the house has no bearing on whether a counter-offer is a good idea other than as a reference to the realtor's "appraisal". (Note, realtors often overestimate housing value to get a listing and then pressure the seller to lower the price to market values, so use caution when relying on realtor's "appraisal"). In your shoes, I would heavily value the no contingency offer, but string along the first offer as long as possible while trying to pressure the realtor to deliver a second offer. Depending on whether or not the second offer materializes, I would counter back aggressively or at 3% below listing as a counteroffer is pretty standard in most real estate negotiations. Be aware that unless you are offering a commission, the sellers are typically responsible for paying their realtor... unless the realtor cons you into paying.

hoboken - I think countering is actually a good idea for more than just the obvious reason of getting a higher price. I think it shows the buyer that you value your home and it doesn't make you look so desperate. Sometimes when a buyer's offer is accepted off the bat they start to wonder if they offered too much. A reasonable counter makes both the buyer and the seller feel like a good compromise has been met if they come to agreement. I think 'meeting in the middle' is a great response. You may not get them to say yes, but it is a very nice and friendly response and not one that would make a buyer feel that the seller isn't serious and would walk away. At least not most buyers! I would be careful with countering too high and saying no to too much, but I think that giving a good counter offer in response to an initial offer is something that can actually strenthen a transaction. This is my EXACT line of thinking on all counts. Glad to know I'm not crazy. Trust me, I'm feeling like I am some days. We don't want to appear to be desperate or a doormat. Accepting whatever they offer without countering could make them feel like they offered too much and then give them the idea to try to get further reductions after the inspection. Julie Sparksals, sorry to say it, but if you have only had 2 showings in the last 25 days, with the competition across the way you described, I think you should drop that price to 225 fast! And before the agent tour! That's the perfect time to snag some agents shopping for their current clients. You need something enticing to get buyers in the door and your listing/photos aren't doing it. Out of curiosity, where do you get the $225K number? I think the areas on the other side of I-10 are definitely not as desirable and as mentioned in another thread, people are often settling for houses that have less ammenities to get the deal, without thinking about long term consequences of buying in an area that will ultimately cost them more in landscaping, fence building, poor school district etc. Add to it such a large inventory over there and a realtor can take buyers shopping and usually find a house in one or two days. There are 60 homes for sale in a small area, but much larger than ours. Our area is small - about 200 homes with 10 on the market ranging from foreclosures to those needing tonnes of TLC and updates. It's a tough pill to swallow and I do have to talk to the realtor about whether the price drop will be best prior to the AO or not. I really do trust her experience and I think my apprehension is more stress and frustration. Price drop inevitable. To 225K, not so sure. That's what we were hoping to get and I was thinking of dropping to $230K. *sigh*

dream2009: You are still doing ok if you go through the original realtor that showed you the place, since she told you she would rebate you the 3%. So basically, the buyer gets to see the 3%(that you get back) in the sales price, but then the seller pays the 6% commission as a separate line item. Then you get the 3% back. It is actually a win-win for you and the seller. The agent is very generous, and I think, should be rewarded with the sale. Many/most agents would not do this. This is basically a 3%gift to you and you are real, real lucky to get this offer. As far as closing costs - it depends on state/municipality. If your area has title companies that do closing, you should contact one of them for an estimate of total closing costs if you buy it. They will be glad to do this in most cases, as you are more likely to choose them for closing. In fact, the agent that showed you the home should be able to help you get this estimate also. If the seller pays owners title insurance(lenders require this), it could get a bit pricey, but it all depends on your area. Also - when/if you get a loan, shop around and find one with 0 points and NO origination fee if at all possible. This will save on closing costs.

I would advise you avoid doing business with AZ tile and Dean Jessup specifically. We had a horrible experience with them. Don't expect them to act with integrity or stand behind their product. We used a fabricator that was a personal referral from him. When we had discoloration and fingerprints that wouldn't come off of our Della Terra quartz he informed me I must have "scarred" it by cleaning with a paper towel. ( I called him within an hour of the fabricator leaving). We paid beyond stone to buff it with a cleaner at their recommendation. It mostly resolved the issue although as a result of the buffing the gloss and sheen no longer match our perimeter counters. Best we can figure out the fabricator applied turtle wax or something similar to disguise striations around the sink cutout. Which is why fingerprints couldn't be cleaned off. We still have some smudges. Bottom line rather than try to help us resolve the issue he was hostile and accusatory. He said the fabricator (a friend of his apparently) said it was fine so we must have done something. Do business with them at your own risk.