Their offer came in at $6k over the asking price, and I counter-offered with $5k more which they accepted. 

@Storm S. if you send offers to enough owners that are off the market, at some point you will get a yes, or at least a counter offer. 

I do a fair amount in SoCal too, nada there too.Listing agent sends over the multiple offer counteroffer form, invites you to submit your best, and that's that. 

if you like them, give them a counter offer

Their agent called back with a counter offer of 223,000.

Over the course of the ensuing six months, I work through the very challenging short sale process,  massive amounts of paperwork and the engagement of attorneys, banks, negotiators, etc...During this entire time, this incredibly dishonest and deceitful buyer is limping along through the process, making counteroffers at the very last moment, ghosting for long periods of time and generally displaying a total lack of understanding any part of the transaction. 

The deal isnt done yet, they just accepted my counter offer and i found an inspector to come on monday so its a process hopefully i close on this property.

I offered the seller 20% below asking price and they counter offered 12% below asking price and I accepted it because it was $1000 below my maximum offer budget amount.

What's the best way to structure a counter offer to protect myself while completing improvements and construction of shop while we are in "pending" status?

What's the best way to structure a counter offer to protect myself while completing improvements and construction of shop while we are in "pending" status?