Go after properties that have been on the market longer or that need repairs or even better both and use the FHA "203k" http://www.203kmortgagelender.com instead of the FHA 203b which allows you to buy & fix it all in one loan.
Maybe that might help your chances in finding, buying and turning something that you might have overlooked before into what was there all along...your diamond in the rough.
I was merely pointing out that typically FHA loans, in this current market, are a little more challenging to get accepted. I think that is what these other agents are trying to say as well.
We need to be honest with our clients and not continue to string them along when their offers are not getting accepted. If the buyers know right from the beginning that FHA offers are not being looked at as much as conventional offers they will understand when they are out bid by all cash or conventional offers.
I think sellers are stuck in old thinking about FHA loans. I close a lot of them and I think in many cases they are easier than conventional. With an FHA loan the loan officer still gets to pick the appraiser and it can be a local experience appraiser. With conventional you have to order appraisals through the new HVCC process which has been a disaster. Sometimes the HVCC appraisers are 60 miles away and have no clue about the local markets and are getting paid cut rate wages.
Also, if you don't call out termite in the purchase contract, you do not need a termite clearance with an FHA loan. And the items the FHA appraiser often asks to be fixed are extremely minor. Many times items that cost a few hundred dollars that the buyer can just pay to have fixed if the bank doesn't want to.
So in summary, Realtors need to step out of the past and realize FHA loans are really not that different than conventional. In fact they have much more flexible credit, asset and ratio guidelines.
I think that the agents are just trying to be realistic. Contrary to what the media says, homes are FLYING off the market. It is not uncommon for bank owned properties to receive over 20+ offers the day it comes on the market. A good majority of these homes are being purchased with cash or conventional loans. It is not impossible to get an FHA offer accepted but it is a little more challenging. The banks want to get these assets off their books so of course they are going to choose the offer that will accomplish that the quickest. You may even see properties that have been sold for less than what you may have offered and it may simply be because someone offered them a cash deal up front.
Don't be discouraged though. Work with your agent to develop the best strategy for the market area you are searching in so that you can be a successful FHA homebuyer.
Hope this helps!