If you are willing to spend the time and effort to do it, then go ahead and make the offer, becauses if you don't make the offer, then it's an automatic loss.
However, I do agree with Michael, some of the agents are pricing houses Way, Way, Way below a reasonable price, and I suspect, trying to either get multiple offer and drive up the prices (which I have seen in Novato, Marin County) or just to get an offer in and go through the process of getting approved by the bank and delay the foreclosure.
Ask the listing agent if the bank has given them a net proceed they need to receive ini order to proceed when they were negotiating with the last five offers. That will give you a better indication on how much the bank will actually accept. However, if you are going for short sale, especially with the one that's priced low, be mentally prepared that there might not be much negotiation room on repairs and credits after you are in escrow (after the lender accepted your offer).
If, however, the listing agent lists it at less than the BPO price, the lender may/can be inclined to reject offers at less than asking. Since you plan to offer full price, you stand a good chance of getting your offer accepted.
On another end. the possible reason your agent is hesitant to submit an offer for a short sale is because of the length of time it takes to even get an acknowledgement from the bank after you submit your offer. Think 45 days waiting for a response.
HOWEVER, your buyer's agent works for you. If he/she doesn't want to write offers on your behalf on short sale properties, and can't/won't give you a satisfactory answer on why not, then you probably should get another agent who will work with and for you.
You need to understand that a short sale approval can take anywhere from 3 -6 months with no guarentee your offer will be approved. Can you hold still for that long? In the mean time the interest rates could go up or down and so could values. What is your time worth? Do you feel this is the deal of a lifetime?
Eric - Century 21 Pro-Team - http://www.illinoislandandhomes.com
First Team Real Estate