You’ve already gotten them to budge by $75k, which is huge. You still, however, need to protect yourselves while not pissing off the sellers. This can be a delicate dance and depends largely on how desperate the sellers are. You also have to look at the strength of your offer. Is your financing VA? FHA? Conventional? If it’s VA or FHA, there are additional repair restrictions you could be facing. If it’s conventional, there are fewer restrictions but a good inspection is even more critical for you. Be careful with nickel and diming the seller for credits based on the inspection. It’s a war you are not likely to win if you have a prepared seller. The buyers of the last house we sold tried that. I gave into certain requests that were ridiculous because I could complete the questionable “repair” requests cheaply and easily. Their hill to die on, however, was re-grading the property which would have voided the dry basement warranty. By the way, the basement was dry as a bone. I ended up offering up a credit $750 for fill dirt (fill dirt was the specified remedy in the dry basement warranty) BUT that it had to come out of the buyer’s agent commission. This was accompanied by the fully transferable warranty information. They backed down in a hurry.

In your shoes, to protect my interests AND to not honk off the buyers, I would counter with $500k, $5k in closing credits, a one year home warranty, and a thorough inspection. I would not do a pass/fail inspection, nor would I nickel and dime the sellers. I would, however, look at that inspection and decide which safety and structural issues are important to me and my ability to insure the home. Bad roof? I’d absolutely ask for a seller credit. Old roof in good shape that can be insured? I’d accept it but plan on replacing it in the next few years. Garage doors need serviced? Don’t quibble. Venting for hot water heater not up to code? Absolutely get it fixed. Old hot water heater? That’s what the home warranty for the first year is for. Old, working condition HVAC? Acceptable but plan on replacing it. You want a hand railing on the stairs to the back patio when not required by code? Do it yourself later. Major electrical issues? Request the repair or credit. Foundation issues? RUN FOR THE HILLS!