Carefully figure your total package, and document any loss of income that may result from a differential in benefits, geographic location, car expenses, and the like. The recruiter is simply making a good faith effort to discover what makes you happy, and put together two interested parties. Of course, there are considerations aside from money that usually need to be satisfied before an offer can be accepted. Factors such as your new position title, review periods, work schedule, vacation allotment, and promotion opportunities are important, and should be looked at carefully. Once you know your bottom line and each condition, or point on the porcupine, you're in a better position to get what you want, since you've established quantifiable goals to shoot for.
Every company makes hiring decisions differently.
Other companies will limit the decision maker's ability to act quickly and unilaterally, and require a drawn-out series of staff meetings, subsequent interviews, corporate signatures, and so on. The best approach is to maintain contact with the company, allowing for the fact that there'll probably be some delay. Presumably, you asked what the hiring procedure was when you first interviewed. Their answer should give you some indication as to when a decision will be made. Offers can be extended by either a letter, or verbally from a hiring manager.