With the exception of the time-frame, what you have related seems in order. The use of the term "counter" seems out of context too if it was not related to the receipt of a counter offer.
Since the lender has the last say on a short sale, and is losing money on the transaction, low-ball offers are not likely to fly if buyers are competing. They are also often offered at the low end of the market value in the hope of making a quick sale, and you may want to consider offering the list price for any home you really want. Without more info about how the "recently sold home" in the neighborhood compares to a specific home in which you may be interested, it's impossible to say whether your decision is based on sound reasoning.... more