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They can be both competent and problematic. It's never an issue for me, though, since we never accept ridiculous counters and rarely even bother countering back. If the gap between what they want and what's budgeted is that wide, it's not worth the time or effort.
Make the case to yourself first if they should be offered more. If you can feel good about doing it, then I don’t see much issue. But they really do have to be above and beyond for something off the charts.
Pro
I am more open to it if they were transparent from the start about the salary. We always disclose the salary band so if it came out of nowhere then I would be hesitant.