I must tell you that if I was doing the short sale I would also counsel my seller to refuse the low ball offer because that would be in the best interest of my client. Short sales are far more work than the average person realizes, so... when I take them on I do expect my clients to listen to sound advise of experience and knowledge. Accepting a low ball offer as good as telling the bank you want a foreclosure. There are statagies and logic to follow when it comes to short sales. You don't submit over the comps because if the buyer walks you may not get another that high but you cannot go to low either, it needs to be within reason.
I you want the condo you should consider writing a better offer - that is your recourse. Even though the seller is facing foreclosure, that does not mean that a lowball offer will get you the condo because the seller is desperate. The offer has to be good enough that the lienholder will agree to the price and approve that aspect of the short sale. Submitting low offers that have little chance of being accepted just eats up valuable time and takes the seller closer to foreclosure.
Good luck with your house search.
Your agent was likely following the directions of the seller or bank. Some sellers will not consider offers under a certain amount and are very clear in letting the agents know this. My best advice is to have a long conversation with your agent and find out what an "acceptable" offer might be.
If the is a short sale situation, ditto the lender.
If the agent is making all of the decisions, the agent is not doing their job. If what was conveyed to you by the agent was that the seller did not want to look at your admittedly low-ball offer, what do you expect?
Do you have any recourse? Recourse for what? Your low-ball offer has been refused.
Please ask your agent to contact the DRE as they have in house attorneys. In my opinion the agent should show all offers. I don't think you will have recourse other than reporting it to the DRE.
The Carrabba Group
Keller Williams Hollywood Hills