Aimee, in my market, such a difference would get the home shown. However, it's very possible that the credit at closing would have a better chance at getting it sold. Telling the buyer's agent that you are willing to work with buyers that are short on cash to close is important.

It may be just as important to leave some negotiating room for your seller.  Leave the price at 199 and then you can counter offer if necessary.  But, if it does not attract offers, you would still have to lower the price to meet the market.  I would not offer closing costs, but that is just me.

In our area the closing cost assistance would be the better ploy. Not sure 5k will make alot of difference in showing but it certainly can for the closing end.