Need help with building counter offer for bank on short sale

[Shefali R.]

Dear short sale experts - need help with building a counter offer on a short sale with pnc bank: 

1. We are in contract with owners for $158K

2. Pnc bank reviewed short sale and did not specifically counter but said a) fair market value appraisal has come at $188k and b) bank needs to net $165k else they cannot accept offer per their investor guidelines 

3. Per revised HUD the closing costs to bank are $14k so basically math above leads to $179k counter.

What is the lowest Counter i can come up with where you think the bank might accept. The $188k appraisal is incorrect but we don't want to fight that battle if we don't need to. 

Thanks!

Shefali