Wow, that's really not good.
I don't think it is industry standard. Perhaps they just won't value the property higher than the list price for 6 months after settling.
Either way, pick a few mid tier banks, I'm sure they will be much more helpful! I found one mid tier really wanted our business when we were looking, I used their offer to bring to my current bank to say 'sharpen up' and they matched it...
Also, depending on your working industry, you might have a professional body / association that has negotiated good rates with certain banks.... Food for thought