where is the property at?
you can spend sometime do some market research, look online how fast or slow properties are sold in your area ,ask area realtors or look online (craigslist etc) for asking prices of similiar properties.
how much difference is there in total from your budget at $92 sq ft to their proposed price @ $96 sq ft? how much did they spend on the upgrade??
from my experience in real estate appraisal in vancouver, fyi, usually a property stays on the market for 30~45 days before they are sold, any longer the owner probably is just taking their time selling it. but of course it's different depending on where the property is.