$230,000 over the asking price and still got countered!!!!

I wrote a few weeks ago about this house in the Berkeley hills where there were 12 offers. The bank still countered everyone for the highest and best offer despite offers $200,000 over the asking price.... That is pure gluttony. And then the worst part is they accepted an offer with 10% cash down on an REO where the previous owner had stripped the house of everything. You name it and it is GONE... so the house cannot appraise as a livable space. After 2 weeks the buyers backed out because they did not get a loan so the bank decided to lower the asking price and put the house back on the market instead of calling the agents who had written an offer!! I don't understand the reasoning yet again. We are back at our second shot hoping to get our offer accepted. I know that there were several over-the-asking all cash offers written on that property with 10 day closes and still the bank glossed over them. Do any of you know what to do to avoid all the countering back and forth and reason with banks? I would sure appreciate any tips you have....In my mind this is insane but nowadays if you don't want to deal with short sales then you have little choices and REOs are the norm.