Your agent went into great detail explaining how the bank or investor will evaluate an offer.
Why are you second guessing your agent?
As others have said. price, is only one component of a purchase offer. If you are a financed buyer, especially with FHA/VA, you must engage during the early window or you can not win.
Your success will depend on a responsive relationship and the trust existing between you and your agent. Second guessing your agent on a aggregate real estate website suggests there is "trouble in the kingdom."
"How can that be?" Because EVERYONE who has successfully bought or sold a bank owned piece of real estate has revealed these are the facts. Those who operate in defiance of this reality ask "How could this be?"
Follow the guidance of the professionals with whom you are working. Without such an adjustment in your thinking, you WILL find yourself chasing prices upward and never making a purchase. You need to come in strong, without contingencies, then you are actaully in the race.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
First Look: http://youtu.be/PumYpkgybXE
Banks look at Offer price as well as down payment, a bank may always go with an
Offer that has no contingencies, such as loan, inspection, appraisal.
So a higher offer with a low down payment and an appraisal contingency
Does not help you.
The banks are still controlling the market. Low inventory and bids taken on the REO property is a sure sign that another bubble could be coming. Dont fall into the trap of the rising prices catch you off guard. Let the market take care of itself. If we Buyers sit tight and let the correction really happen then maybe the market will adjust itself like it should.
If you are an FHA buyer, a "better" offer could either be a conventional buyer (meaning they are using a conventional loan) or a cash offer.
It could also mean that the other offer was not asking for any incentives i.e.: home warranty, closing costs, repairs, etc.
If you have the address, I can look it up and let you know what type of financing the buyer had --- the escrow on the property must be closed in order to see.
Good luck in finding your home,
maybe the other offer was all cash - that could make a huge idfference to the bank..........or offered a faster closing date..........or had no contingencies.....