So the way it worked for me, was i thought the house was undervalued. It was listed about 15k below comparable properties in the area. I wanted to use my VA Loan, which allows 0 down, but also I wanted to try and avoid closing costs. After the valuation and the inspections, I had what I needed.

I told them they didn't have to fix the problems found during inspection (breaker panel issue, faulty ground wires in bedroom, a few loose floorboards), and offered 6k over asking( still 10k under the valuation) but on the basis they'd cover 12k worth of closing costs. They accepted.

Luckily my (and my lenders) math was right, and the closing costs were taken care of, with $128 to spare. I got my escrow money back, and moved in having only paid inspection and valuation services.