Hi again Gelika -
Grace has covered most of the territory I didn't, so I'll try not to rehash much.
We're required to submit ALL offers to the seller - regardless of when they come in, even it it's ten minutes before closing. That doesn't mean all offers will always be reviewed or considered, but they do have to be presented. I agree with Grace's comment suggesting that the bank should ask both parties to submit 'best offers', and ran into just that situation recently, but also agree with her that most banks often don't (my words) act in their own self interest.
I'm not sure where you are in Colorado, but given your description, I'm going to guess you're somewhere in the Denver area and bidding on homes below $200,000. Assuming this is true, then I totally understand your frustration. The past year has been increasingly crazy around here in this price range as more and more buyers compete for fewer and fewer homes. I have been working with some investor buyers recently and we went through this too for a whle. They had wanted to bid below list price thinking they were still trying to get a 'discount', and we kept losing the bids. Finally I got them to bid a little bit above the list price - and we won the bid. The difference was only a few thousand dollars, but now we're looking at closing soon instead of still bidding, so they're happy.
As for the seller's agent possibly being your agent too as buyer's agent, that's a tricky situation. In some states it is legal for a broker to literally be a so-called "dual agent", representing both sides in a transaction as agent. In Colorado this is not legal and hasn't been for some time. Instead, here we have the somewhat confusing alternative relationship of the broker being a "Transaction Broker" for one or both sides, or being agent for one side while the other party is a "customer". All of this can be a bit confusing, both for the Realtor and for the client, when there's only one broker in the deal. It's legally fine if handled correctly, but always tricky. I've handled situations like that several times myself, and though I make more money on those transactions, I don't like it for all these reasons so I try to avoid it.
If you otherwise like, trust and enjoy working with this broker, then that's great, but going forward, it might be easier for you if you ask your broker to show you only homes where he/she isn't the listing agent. It's not his/her fault that that situation is hard to manage - it just is - so why not avoid the situation?