are these pretty normal fees, should I come to him with a counter offer (if so, what are your thoughts) or should I drop him and look for someone else?

While I wasn’t feeling ready to actively pursue that goal for a while longer, this building fits the bill - deferred maintenance is so prevalent that there is ample opportunity for adding value.I’ve been crunching numbers to determine a counteroffer to the owner’s asking price.

If they don’t counter offer then I might see what they are willing to let it go for. funding it with my HELOC.Indy is super cheap compared to my area here in Sonoma County, Ca. 

If you send a letter introducing yourself and generally just showing the seller that you're a reasonable person who respects the seller and wants to make a reasonable offer then you may have a better chance of the seller considering it and sending you back a counter offer...Sometimes offer below the maximum price you're willing to pay.

The seller stripped it down to the studs and made permitted improvements to the main floor and significant unpermitted (as we just found out when receiving a counter offer) improvements to the basement (bedroom with egress window, plumbing and electrical for a kitchenette, flooring, paint, trim, etc.).

I have been reaching out to operators to see if they would be interested in selling in selling their properties.One of my questions when I first started reaching out to owners and was wondering why I wasn't getting counter offers.

Ask, offer, counter offer....Nothing moves forward until everyone is in agreement.

Since the seller did not come back to us with a counter-offer, I don't know how much the other prospect offered in their escalation clause.

Your goal is to get a counter offer here, so that you know what you are really working with.If he doesn't like either offer and won't give you a counter, he is likely not that motivated and you should move on, following up with him as time goes on.The market is full of unmotivated sellers. 

Hi everyone, looking into buying a property (as a personal residence), I received this counteroffer around an hour ago.