You can't rush this. 1200 is too low
Unfortunately I have to pay for all utilities and get rid of a beloved pet due to restrictions.
That is unfortunate but this is a pretty awesome home. Because of the utilities I can lower the price to 1400.
Is there even a yard or lawn? 
There is a small backyard for each unit. It's gated
Sewer and trash fees are very high at the moment
Okay how about this....half off the security deposit and 1350. 
This places comes completely unfurnished? 
Yes. It's unfurnished. You can decorate it anyway you like
I really appreciate the half off security deposit, thats very generous. Can we work somewhere around 1275?
How about a flat 1300 which includes all the utilities and you only pay half (650) for the security deposit?
If you're willing to include utilities into that fee, I say a flat 1300 sounds good on my end.