I used the listing agent and no problem with the offer and counter offer. 

I finally mustered enough courage to make an offer this week and one of them actually got a counter-offer!!!

With a project cost of $850k ($700k purchase plus $150k rehab) at 81% of the $1.05M ARV you are approaching a break-even deal at best.Since many on this board don't like rules of thumb, here's a detailed profit and loss estimate based on your numbers, a more realistic six-month turnaround, and typical hard money rates in LA right now.Assuming perfect planning, you will earn about $62k or 6% of the ARV, which is way too low and easily eaten up by a small rehab overage, construction delay, or a fair counteroffer of even $1.00M.

Thanks for your suggestion Colleen I am in the process of a counter offer at this point suggesting tha

Since it is the sellers counter-offer, isn't he/she obligated in some way to respond to his/her own offer?

FMV on the property once it has been totally rehabbed is about 305-320K I want to offer 85% of asking price, but I have concerns about being outbidded, and that the lender won't give me a chance to counter-offer?

We made a counter offer to their counter offer.

Here is the final counter offer and I would like to see if you experienced verterans believe it is a solid deal at this price point.

I'm thinking we counteroffer at a lower price than our initial offer since they counter-offered and the ball is now in our court.

Once the SA was involved, John doing the "favor", subsequently wanted a buyers agent agreement and refused to present any counter offer without proof of funds.