With a bank, they have no emotional connection with the property. In other words, it's all about the numbers with them. If you have offered to purchase a REO / foreclosure from a bank, and the bank counter offers, in my experience, they won't budge on the price, unless it sits on the market for a few more months. Then, they may be more apt to drop the price. My advice is, if you really like the house, add the additional money so you don't lose it. If it's not that important to you, take the chance with them that it won't sell to someone else, and keep an eye on it to see if the status or price changes.