There may be an executed addendum in place stating that the owner can only sign and present one offer at a time to the lending bank. The executed addendum might also stipulate that no back-up offers can be accepted during this time.
You should clarify the reasoning behind this with the agent; and if you are not satisfied with the response you should ask the broker.
It's also very curious how you know that your offer will be $25k more than the other offer...but that's another issue.
The good news is that "Multiple offers are not accepted".
So you "Could be in the running"
First, is this your dream home?
If your answer is yes, then be persistant.
Under the transaction broker agreement used in most offices in Florida all offers shall be communicated
to the seller unless directed not to in writing.
I am providing you a link to that document below:
Hope that is your favoite answer :))))
Coldwell Banker Camelot Realty
Mount Dora, FL 32757
In your situation you may choose to wait a long time for the results or look for another home.
The other two answers summed up your situation well. There may be dynamics of which you are not aware, like the lender requesting only one offer at a time, or the seller dictating so. Ask your agent whether the lender or seller is the one requesting one offer only be presented. It is a difficult situation but you have to be patient. Phil's suggestion to ask the broker is a good idea if your agent cannot provide answers.
Best of luck,
Rachel LaMar, J.D.
LaMar Real Estate, Inc.
all the Best
Dave & Lisa