It's *EVEN MORE* rare that a bank won't either reject or counter-offer a price this low, so there's essentially no chance of getting it for that price if your first bid is that price.I'm not trying to rain on your parade, just trying to prepare you for the inevitable.

The inspector finds a lot of problems ( many were obvious pre offer) seller comes back with a lowball counter offer knowing he was going to do that in the first place.

With fingers crossed and high hopes, we finally heard back with a counter offer for slightly above list.

There have actually been 3 offers made (including mine) and so now he is asking for counteroffers. 

If he is not counter offering with a price he is more comfortable with, I'd say he is losing out.

Right now, I think I am just going to make a conservative counter offer working under that assumption.  

Of those you set aside you take a deeper look at the numbers and go from there.Once you understand what you need for a deal to make sense then you can submit an offer, once the offer is accepted you do the inspection, you make a counter offer based on repairs need, then either you close on the house or walk depending on how the numbers work. 

No counter-offer was submitted.I thought about waiting a couple days to reply (so as not to seem eager), I'm a little annoyed they didn't even counter. 

Do I pay the $3-400 for an inspection before making a counteroffer, or move on and keep looking for other properties?

Hate to be a killjoy but,I doubt a bank would give you a 15,000 discount on their property and let you shop it for 30 days.Also there may not be enough cash profit after 60 grand in repairs unless your are accidentally over estimating the rehab needed.It's just my opinion don't take it for the Gospel.Give it a chance but, expect the counter offer from the bank to be near 40 grand.Hope I am wrong,good luck to you.