Multiple offers on bank foreclosure?

I just put in a Full price offer on a foreclosure and was told today that there was another offer very similar to mine. My agent says we need to make a decision before 9 am tomorrow morning on what to do.. what should i do? is the listing agent trying to create a bidding war? my offer is contingent upon a home inspection and working with a first time home buyer program. can i get my offer accepted without raising my offer??