Consider presenting a third offer that leaves it open until you identify and go to contract on another property. It's important that this seller knows you are serious but ready to move on at this point. Make it clear this is the last time you will be bothering him with a purchase offer.
The first thought that comes to mind, besides thinking that you are dealing with an unrealistic seller who doesn't want to sell, is the possibility that they owe more than it's worth and maybe it hasn't become a short sale because they are still able to make their payments. Have your agent check how much they owe (if they haven't already done so).
Another idea is to have your agent contact an appraiser and ask for a free "value check." If that number also comes in around $200k -$220k, present the appraisers findings to the listing agent. Then ask the listing agent to present the info to the sellers or have them call an appraiser they know to do a value check. The numbers will be similar.
The seller may be more willing to consider a valuation from a neutral 3rd party (appraiser).
Tom Goeders, Realtor, SRES
Keller Williams Realty
Keep in mind the seller does not walk off with the $225K they have to pay agent fees, closing cost, insurance, taxes at times can't low price due to overhead just sale a home. Many dont take that inconsideration. Although it requires work if lease can keep renting the property.
National Featured Realtor and Consultant, Mortgage Loan Officer, Lecturer regarding Credit Repair
My question is: Do I make another offer? If so, WHEN? Do you think these people are really interested in selling? What do I want? I want them to sell me the house for a little above its market value.
By the way, the way these people are acting also makes me think they will be difficult during the inspection process; do you agree?