> They were in areas where the $125/yr was equivalent to $75k/yr. We were looking at experienced developers only.
It sounds like you offered $75k a year [which you calculated as equivalent to a $125k/year offer for their location].
I'd turn that down too. People try to pull that adjustment trick on me all the time when I was looking to relocate, I'd go up there and they'd give me a number the day after I got home and I'd be like "...that isn't equivalent at all." and then politely decline.
Just fyi, maybe I misunderstood.