Offer Update

We received a counter offer from the sellers last night. We were expecting one, but I think we both had higher expectations for negotiations. They flat out rejected everything we asked for (refrigerator, flooring allowance) and said they'd pay some of the closing costs, but RAISED the asking price of the house to cover it. In addition, they wanted our escrow money to be deposited in the seller's account, which was pretty much trapping us into the short sale unless we wanted to lose the earnest money. I think the house is still a great deal, but we're having some really bad vibes about it, and think it's just going to be a long and difficult road to go down. If we had more cash on hand to go in and fix up all the things that needed to be fixed, I think it'd be a little different feeling. But we really just need a move in ready kind of home, and one that is not a short sale. We're crossing our fingers for some more bank owned homes to go on the market in the next little bit, but who knows. We haven't rejected the counter yet, but are leaning towards walking away from it.