Everyone will have huge reductions in cash flow and likely resulting property devaluation. 

I responded with a best and final offer consisting of the same terms as well as a reduction in price for items found in the inspection.

@Todd Moriarty, make sure you're adding back the Principal Reduction from years 1-3 for a 3 year exit, or Principal Reduction from Years 1-5 for a 5 year exit. 

They are looking for a substantial reduction on price.

This is the absolute correct attitude to have in this business.About half of the time the answer is yes on a tax reduction.  

Were there any price reductions?

Now lets wrap the amortization into our example. using the loan terms I mentioned the first years of the loan will result in a $52k reduction in principle or if the value stays the same that would be seen as a $52K increase in equity.

Am i better off waiting for a few price reductions first and then offering.  

However i would like to stress it here that  paying down on mortgage loan is good because it often time serves as a buffer to your investment in times of unexpected  market free fall and uncertainties which may lead to reduction in cashflow and income which of course can make mortgage payment difficult.

Expense reduction or revenue growth?