Sorry for the delay.  I was showing property today and preparing to show property tomorrow. 

Okay, I guess I have more questions than you :-) First, it isn't unusual for an investor situation come back with their own counter, for a variety of reasons. You shouldn't have been surprised, and should have been prepared.

My questions:

Did you know you that Chase was servicing the loan for an investor?  For that matter, did the listing agent?  If you did, then you would have been able to prepare yourself, and your buyer (or seller) that there is an additional party that you will be negotiating with, and that investor has final say, beyond the bank servicing the loan, and can take longer to get approved. 

What are your comps at time of offer? Can your comps, or even current comps - considering condition - support your offer? Send a rebuttle and support your it and your clients offer. Detail the defects.  Don't assume that the bank/investor is aware of them.  If favorable in your case, you may want to include active listings w/days on market, listings that have been on the market a long time. Show that this your offer is good, and what the investor will be facing if put back on the market, or foreclose and what defects he will be inheriting.  Show the investor (and bank) that delaying could cause additional losses. If the property was on the market for an extended amount of time before accepting your clients offer, remind them. You might even want to send backup/pending listings that will support your offer, especially if you don't have enough old active listings. You can always pay for an appraisal and make sure that the appraiser knows about all the defects. Don't assume he/she will see everything.  If the appraisal supports your offer, you can submit it, if you have time to get one that is.

What is the assigned negotiator saying? Can you get him/her to support your offer?  Be patient, understanding and appreciative to your negotiator.  And make sure you thank them for their efforts.  Remember, everyone else is being demanding and rude. 

The investor may be testing your CASH investor, especially if the "proof of funds" shows that they have the money for a higher purchase price.

When you stop and think about it...your reaction and response shouldn't be that different than a counter in a standard sale....support your offer (price and condition), prepare your buyer to walk away if counters take the purchase price above what they are willing to pay for the property. 

Present in a professional manner, language, be respectful.  I often will start a request like....."I respectfully request............"

Good luck.