You can modify it (have to initial those changes, so all should be in writing).
You can stay put on the amount as well.
However, if the bank countered only 1K lower, this usually means that you either have to accept their
offer or pass on this property (don't waste your time).
Hope this helps,
Beachfront Realty, Inc.
What is the best way to send your message? Through your Realtor. Use a coversheet, a Counter Offer, and possibly a CMA.
Yes, you can respond with higher, lower or the same price that you originally offered. What do the comps tell you? You should expect to pay a little under the going price for a bank-owned property.
I assume and hope that you are using a Buyer's Agent that you trust. Ask your agent for detailed comps to justify your offer. I would even share those comps with the Listing Agent when you respond. I do not base the offer price on the list price, because the list price could be too low (and you may miss a bargain) or too high (and you may overpay).
If you do overpay and you are taking out a loan, the appraisal should help give you more information. If the appraisal says you overpaid, then the bank will make you come in with more money, or you can cancel the escrow, or you can try to renegotiate the price.
Do your homework. Then decide how much you want this home.
I understand you don't want to pay more. However remember if this was the house that you've been looking for ...then you might want to reconsider and not loose it by $1,000. If you are perfectly ok to pass this one and willing to keep looking, then you can counter back with whatever price you want.
Hope it helped. Good luck to you~!