I agree with Mansur very Strongly. As a consumer I know that if I make an offer the listing agent is obligated to present it to the seller. The seller may turn down the offer (that's their right) yet the offer must be presented. There maybe another reason why they don't want an FHA 203k. Maybe they think it will take too long. I would ask and find out if the listing agent has had any experience with FHA 203k loans.
We're closing Streamline K's within 40 days. They're great loans.

You can submit any offer you want regardless of what the listing agent states. Once you submit the offer the listing agent is required by law to present your offer to the seller. If the bank's condition is to sell "as is" you will be meeting this condition with your FHA 203K offer. Cash and conventional offers are not easy to obtain and most banks have started to realize this after losing their shirts going this route. Many are now fixing properties before putting them on the market and many are eager to entertain realistic offers. If the listing agent refuses to present your offer, discuss it with the broker/manager of the agent.

Mr.Lecinski,

Thanks for answering my question. According to my lender (Wells Fargo), the inspection shouldn't be much of a concern because as you stated the property is being sold "As Is". In addition, she suggested that the closing process should be the same no more than 35 days, should I still make an offer, or the only way would be conventional?

The home most likely needs repairs and will not meet FHA requirements. FHA203K loans usually take longer as a rule alos. I assume the home is being sold As-is, The seller (bank) will not do any repairs. Chances are an offer stating that you will be doing an FHA will not go through because of the repairs that maybe needed. There are REO properties like this.