I asked for a formal communication and they told me the counter offer was an internal document.

It was my first time experience with a FNMA home, and apparently first time for my attorney and agent as well, so we all assumed it is the same as ED effective date...meanwhile I was still in negotiation with FNMA, counter offers, and counters to those, and once we agreed verbally, I sent in the signed addendum, took a few more days to get it signed on their end.

Is there any way to put a counteroffer to raise my bid?

In your next transaction be sure to state that any additional appraisals and/or inspections are to be paid by the buyer in your counter offer.

He also said I can make the whole thing go away if I pay him a counter offer.

I received a counteroffer of the same price (199k), however, seller is asking for 51% of closing costs.

- this will be under a LLC name which has their current house and will have a personal guaranties as well (from him and his wife) Of course we will have lawyers to draw all papers but wondering before getting lawyers involved (or even do a counter offer) what kind of documents I should ask him to see (that he indeed can afford this deal) I live in DC and my effective federal tax is 15%.

Here is an excerpt from the National Assoc of Realtors -   The Code of Ethics obligates REALTORS® to be honest with all parties; to present offers and counter-offers quickly and objectively; and to cooperate with other brokers.

So I submitted an offer an a property on a Friday and didn't receive a counter offer or anything. 

Tweak the formula as needed.FORMULAARV*70% -Repairs -$3K Closing Costs and Points for Borrowing Funds -Profit(=10% of ARV) -Counter Offer Margin(=3% of ARV) = Max Purchase Price *Make initial offer of 65% of Max Purchase PriceEXAMPLE$100,000 ARV$70,000($100K X 70%)*70%$18,000 -Repairs$3,000 -$3K Closing Costs and Points for Borrowing Funds$10,000 -Profit(=10% of ARV)$ 3,000 -Counter Offer Margin(=3% of ARV)$36,000= Max Purchase Price-----------------------------------------------------------------------------------------$100,000 X 70%= $70,000 (Max buyer will have into the deal including repairs)- $18,000 for repairs= $52,000 (My price to buyers - 70% of ARV minus repairs)- $3,000 closing costs(I try to negotiate as much of the closing costs from both closing away when doing a double close)- $10,000 profit- $3,000 counter offer margin(wiggle room)$36,000= Max Purchase Price*I Make my initial offer at 65% of my Max Purchase PriceInitial Offer= $23,400