Making an Offer

[Diane Clarke]

Hey.  I am in the process of making an offer on a Homepath property.  The price came down  the day that we made our first offer and need some advice. The house started off at $220,000 and we offered $150k and then they lowered the price that night down to $189,900 so they countered us with $188,000. We don't really know what to do.  It goes to auction next week.  We really like the house, but it needs work and there is no telling how much damage the termites have down under the house.  So we are wanting a 203k loan and our question is what would someone recommend we offer or should we wait til it goes to auction? Any suggestions?