It sounds kind of like a bottom line counter offer, we don't know.  

I then came in with an offer at 161K (Which is the address of the house, I acted like I was superstitious and that I wouldn't offer anything higher than that LOL) they counter offered with 169K & I came back in again with a hard 161K... and it was accepted!

Is this simply the last "counter offer" from the bank, during a previous negotiation? 

Practice your craft... practice writing a lot of offers, counteroffers, listing agreements, etc. so that when it is time to write a real deal, you will be comfortable. 

A&E a counter offer of 15k higher than the winning bid.

Greeting Leo,I am in the first stage of this process, I have located a property and have accepted the counter offer from the seller, an REO.

I know it was low but my realtor forwarded me the person's response that just said:"you are joking aren't you"I thought maybe they'd say no and counter offer at least to something lower.

Any suggestions about counteroffering?

We just got a counter offer that had the attached paragraph removed.  

The market in Northern CA is crazy mind you, and after back and forth of counter offering, our offer of $242,000 ($17,000 above asking price) was accepted.