Is it really bad to offer the asking price?

Myself and my partner have just put an offer down on a house which is advertised at 145k.

We put in an offer shortly after viewing the house as well fell in love with it and although it’s been done up in some parts, it needs work in others. Thankfully we have connections but we offered 2k under the asking price to cover the cost of the extra work.

However, it was only after we offered this we realised the house had already been reduced by 5K due to not selling. We have had another email today to say there is another couple interested, is 143 our best offer so we said provided we didn’t realise the house had already been reduced, we would be happy to extend our offer to the asking price.

My partner’s relative is now saying that was a stupid thing to do and not to offer anymore. However, we have a baby on the way, really like the property and don’t particularly want to rock the boat. We are first time buyers- any advice?