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For those who has seen this, do you think my original offer is too high? If the bank would have accepted the lower price plus commission?

Hi All, Been lurking around here for awhile (thank you all for the information, I learned a lot about house buying here!!) and now finally ready to purchase a home in Irvine. I am putting an offer in for a home (short sale) in Irvine, and after a few days, the seller's agent came back with...