It doesn't matter that you're offer was first at this point or if you sign the counter first. The seller is countering with you both. In other words, they are looking for the highest and best offer. Highest price doesn't always mean best offer either. The terms also come into play. If you cannot go any higher in price, then I suggest you try to limit your contingencies and close as soon as possible. The cleanest and most solid contract is the offer the seller will most likely choose. So my recommendation would be, if you are serious and really want this property, to make your best offer pricewise, and don't ask for too much. Keep it clean. Talk to your lender and see how soon they can close and then set your closing date as early as possible. I would not eliminate your finance contingency if you are going to be financing the property. If you are not yet pre-approved (not pre-qualified), I would make an effort to get pre-approved as soon as possible. I don't know what was on your original offer, whether you asked for $ back, or asked for the seller to pay for certain things (i.e. Home protection plan, etc) but the more you ask for, the more complicated you make your offer. That's why I say...Keep it Clean and you'll have a better chance of having your offer accepted. If the other offer is better all the way around, then all you can say is "it just wasn't meant to be" and move on, there are plenty of properties on the market and new ones coming on every day! If I can answer any other questions, please don't hesitate to contact me: email@example.com. Thanks and Good Luck!