Sounds to me as though your best course of action is the submit a written offer accompanied by a strong preapproval from a credible lender - even better get approved, provide a commitment, and submit it with a request for receipt to ensure that it the seller sees it. The seller can ask for anything but it doesn't mean he'll get it. So in the end you may still prevail.
Get that offer in there, and then keep moving and keep looking. Things tend to work out....
Unwavering Commitment to Service
1. The price is so low that the Seller believes a cash offer will come quickly. Negating the to wait for further bank approval.
2. Seller believes that there is a defect in the home that will stop it from financing properly. Could be lack of.. or proper service of various utilities, to structural issues.
3. Home won't appraise. Could be various reasons.
.... the list really could continue.
I would recommend that your agent speak with the listing agent. A quick call may give you the answer your looking for.
Let me know if you need any more help.
Hmm... For the bank it seems like timing might be an issue. Even though it seems you are willing to come up with an acceptable mortgage that would equip you to handle even major repairs, the bank might be interested in closing within a timeframe only a cash buyer would be able to offer.
I can't really imagine why you wouldnâ€™t be able to at least submit an offer though.