For REOs, your highest and Best offer is suggested.
The number of Offers is not really public information.
Banks dont always negotiate. They well tell their listing agent to request the "Highest and Best" from each prospective buyers agent.
To my understanding:
Owner Occupants with FHA loans come first
Owner Occupants with 10 to 20% plus down payment on conventional loans
Owner Occupants with cash purchase.
Best of luck