How should I counteroffer?

[Katie Do]

I am in a process of negotiating a deal on a house that has 4 beds, 3 baths, 2298 sqft, the house is in a fair condition, no flooring in living room, kitchen and hallway. They took out carpet and stained the concrete but they didnt do very good job on staining. In the baths and beds, new owner which got the house from trust his deceased parents passed on to him replaced new carpet. Everything in house is still original wall paper, etc.... The house needs a really bad painting job which owner had a bid $3500 to repaint whole house and trims. Asking price is $225K. I put 1st offer in at $179K. He countered offer back$220K. I then countered offered back at $183K? Is it too low? WHat are counteroffer strategies? 

Also, I have listing agent put offer in for me. AT first, he seems to be nice to work with but then when I told him that I wanted to counteroffer back at $183K . He flatted out told me seller not gonna consider it.... And basically talk down on me from that point. I have this thinking in my head to ask him what can he do to represent me and help me with this deal? Or should I get a new buyer agent that will help me push through this deal? Please give me your honest advice! This house has no mortgage on it currently.

Thanks