Hi Richq - the bank cares about what they net. So if you offer a higher purchase price, but ask for closing costs to be credited back, they really don't care about that gross number, they look at what they'll net after they give you those closing costs - thats your real offer. Lets say your offer is $400k, but you need 10k back in costs. Your net offer is really $390k to the bank. If another buyer comes in at $390k, and they DONT need closing costs whatsoever, its probable the bank would chose that offer between the two options - since a buyer requiring NO help with closing costs, on the average, appears like a more stable buyer financially who has a higher odd on closing the deal, since they must have some $ in the bank to close the deal. Just remember its about what the bank is netting. If your asking for more closing costs than your competition, but you're still netting the bank a higher price, odds are they would take your offer. A bank asking for highest and best is very common, usually in REO deals, not that common in short sales, but it happens, especially when there are multiple offers as you've indicated. Best of luck with everything!