Joshua's absolutely right.
Look, Derick: You say the price is $20,000 more than you wanted to spend. OK, it's fine to reevaluate what you wanted to spend. But if it's dictated by the amount of cash you currently have and the monthly payments you could afford, then stick to that figure. I can show you lots of houses that are true bargains at $600,000, that've been reduced in price by over $100,000. But would it be smart for you to buy one of them? Of course not.
I'm also concerned about your statement: "My realtor think I need to put in offer at full price because the bank already took 30,000 off the price." It doesn't matter if the bank took $1 off the price, or $50,000 off the price. The first question is: Can you comfortably afford it? And the second question, also a make-or-break question, is: Is it a good value at the asking price? I've seen plenty of houses (even foreclosures) with $30,000 price drops that are poor values. What you need are comps. Have your agent run a CMA and have her tell you what she thinks the house is really, truly worth. Not how much the bank's reduced the price.
Then you take the number from the CMA, you take the number you've come up with as the most you'd be comfortable spending on any house. Then you make an offer at the lower of the two numbers. (Or even lower, in the event the bank feels like negotiating and counters.) If your agent doesn't like that strategy, find another agent. Remember, bottom line, you're the buyer. You make the decisions. Yes, you weigh and consider advice from your agent. But you're the decisionmaker.