Need some advice on a REO

[Tom Albares]

We are trying to purchase two vacation rental condos here in Tucson. One was a normal sale, and we put on offer on it that was accepted. The other condo is a foreclosure that we also bid on. I bid 3% under the list price and asked for $2500 in closing cost. No inspection contingency. Now the bank has come back for best and highest offer. Our realtor found out there is only one other bidder and the bank wants all bids back by Sunday to decide on Monday. My wife does not want to get in a bidding war. If the unit sells for much higher, it will approach the price of the other condo we have under contract, but would need bathroom repairs? What should I do? Should I increase the bid to their asking price? I think I should drop the request for closing costs. Should I increase the earnest money from 10% to 20%? Or should I just walk away and concentrate on renting the one property we have under contract?