What to offer on a short sale?

[Jeff Arndt]

Hey guys I could really used some advice for this is my first short sale purchase. I'm looking to put an offer in on a short sale listed at 209k. My realtor says that there was already a full price offer that was rejected. How could this be? Did they ask for the seller to pay too much in closing costs or do they want to many repairs to be done before closing?

Also, there is another offer sent in but we have no idea where it is. I think the property is a good deal even at full price so I wouldn't like to lose this one. If i come in at 190k will the seller/bank not even look at it?

So I feel I have three options.

-Give full price offer with some closing cost to be paid by the seller?
-Offer a lower price with no closing costs to be paid?
-Pay full price and all closing costs?

Any help would be greatly appreciated BP!