Thanks for the advice everyone. DH thinks maybe the other offer hasn't been accepted because it's a really low ball offer, so we've got a good chance of coming in higher than them. So kind of what you've said RhiChiChi - if it was what they wanted they would've done something about it already.

Manhattan, the deposit is a good point, I hadn't thought of that! We've got a fair bit in savings so could give them a decent amount.

When two parties were interested in a house we were selling the agent requested they put in their highest bid each. Worked out great for us (as the vendor) and they winning couple never knew they offered $24,000 more than the others, they just paid what they thought it was worth to them.
That's kind of what we're worried about. If we offer $325k & the other offer was $300k, we could probably get it cheaper but we won't know. It's a great situation for the seller but not so much for us lol.

We'll definitely mention that we're ready to go. We should be able to do a 30 day settlement. Ah the benefits of working at a bank! Lol. We're going to research the area tonight and see what has recently sold there and see if they've got a reasonable price on it. Just from the quick look we've had we're not willing to go higher than their minimum asking price, but I reckon 10% lower might be too low.

Thanks again everyone