Right, a Counter is different than a Request For Repairs.
Good intent but wrong form, when you counter, you have rejected an offer.
So then a Seller, can decide to counter or reject..you got rejected and contract is done...
Are you sure you know what you are asking on trulia.
Why not ask your agent.
Why would you counter, a new finding for repairs?
Based on how you have put it here, they the sellers are right.
If you do not have an agent, get one.
If you have an agent, and agent filled wrong form, then you may want
to talk to his broker. If s/he is a Broker, then complain to the State Board.
The best thing to do, is , if you want this place, work it out with sellers,
unless they are done, and dont want to work with you.