Thanks to everyone

Your positive thoughts paid off.  We signed the purchase agreement this afternoon.  Evidently the extra $5000 was a miscommunication.  It was the realtor's idea in case we needed extra money for closing costs.  So we've got our price.  

We also had, transferred to us through the realtors, a message from the current owners giving an explanation of their decision to drop the price.  They said that our visit on Sunday showed them that we really care about the property and will give it the care it deserves.  Evidently they had other offers, one of whom wanted to bulldoze the house and build new and someone else who wanted to use it as a rental.  They said they were impressed by our desire to make something of the property and that's why they are agreeing to our price.  Wow.  Now I feel quite humble.  We'll have to make good on their trust.