2 rookie questions

[W L]

I read in the newspaper recently that when there are a few competitive offers on an reo with offer amounts in the same range that banks are inclined to sometimes go with the longest time period in which to close because their wheels turn so slowly. Does this ring true?

Also, I have been given conflicting answers to this question- if I submit an offer that includes dates for inspection, do I need to specifically state that the offer is contingent on inspection to get earnest money back if I don't like the inspection? My agent said that if I specifically outlined the contingency that it would raise red flags and that just including the dates of inspection is enough to reject the contract and walk away with earnest money if the inspection is a mess.
Thanks in advance