Hopefully you are using a local Realtor as they would be able to advise you on your next step. They know the local market and current trends. What advice did they give you? When representing my buyer clients, I normally discuss different negotiation strategies before a contract is written which allows me to get the best deal for them.
Some questions to ask yourself before making your decision would be: How much is this home worth to you or what are you willing to pay? What are comparable homes selling for? How much can you afford? Besides price, there are other terms of a contract to consider. You know what is more important to you...is it price? 3% assist? closing date? other contingencies?
With all that being said, together with your agent's advice & your personal priorities, you will be able to make a decision on what to do next!