ready to go with any offer. I dont think it matters that the listing agent and the selling agent were related. The seller accepted the offer because it met all of the sellers needs and the supporting documentation was in place.
I try to have my buyers cross pre- approved. I have them get pre-approved by at least two major lenders from the start. When I submit offers I make sure to stress my buyer has already been crossed pre-approved and I provide the pre approval letters from both lenders with our offer. Being crossed pre approved shows your strength as a buyer.
In your case if the escrow has not yet closed, have your agent ask if they will accept a back up offer from you. Many times just because someone accepted an offer with a higher sales price dose not mean the deal will actually go through. Deals fall out of escrow often, and if the listing agent has a solid back up offer already on hand from you , you may be in luck.
Best of luck to you,
Kawain Payne, Realtor