Fannie Mae may accept or provide a counteroffer that we determine to be in our best interest.

Did you mean counteroffer? 

The ONLY downside I would see to the deal (even at the counter-offer price), is if there is something going on in the community which will decimate the rental market (e.g. the principle manufacturing plant in Trona is moving to China).  

Going along those lines, I personally feel that anything remotely in the ballpark for a property on the market for a year is fair game. 65k is a starting point and if the seller is serious about getting rid of the property, they may at least come back with a counteroffer.

We got counter offered by 9pm.  

He came back with the sellers counter offer which am not will to pay and since then he's been pressurizing me to make a higher offer so as not to lose the property.

He came back with the sellers counter offer which am not will to pay and since then he's been pressurizing me to make a higher offer so as not to lose the property.

We counter offered today since we been getting  a lot of strategies for the balloon payment.  

After we finally heard back, they counter offered at 150k (my initial offer was 127k or so) and we settled on the listing price of 135k after I told my realtor that was the highest I would go.

I have contractors lined up next week to give me some estimates so I can accept, counter offer or back out altogether and give up my $50What's the point of as is with no seller contingencies versus listing contingencies?