Counter offered?

I believe we were kind of counter offered. I think there were only 2 offers on the house including ours. I could be wrong though. But we're going to put in $1000 more. We really don't feel comfortable doing more than that since it was already higher than we wanted. I'm trying not to get my hopes up, but this would be a really good house for us. It's in the perfect (realistic) area for us. 5 min from church, 10 min from where we spend a lot of time, 15 min from family and current jobs. Also all it needs is paint, carpet, and a fridge. But the paint and floors aren't even essential but we don't like what it has right now. I feel like this is our best chance at getting a house since its not a HUD home, foreclosure, or short sale. I guess we'll find out tomorrow or the day after whether they accepted it or not. We still have to put the offer in but that won't take long.