iTunes doesn't recognize iPhone's remote app
To answer your question. I have the same configuration as you. 

OS: Mavericks
iOS: 7.1.1. 
Hardware: iPhone 5s and MBP Late 2013 
They are both in same wifi network.

This is what I did: 

I selected "Create Network" from the wireless icon in the menu bar. I did not specify a password. I was able to use the iPhone Remote app without failure. Since then, I've reconfigured it with a password and it also works without error.