Buyer beware

After putting in a solid full-price offer for a house that's been on the market for less than 12 hours, the selling agent said that he would review offers today at 2:30. We found out by late morning that we were competing with 2 other offers though, so we sweetened the pot as much as we were comfortable (waived the inspection and added an escalator). However, at 6pm tonight we found out that while we were the highest of the 3 offers they had in writing by the 2:30 deadline, another guy gave them a verbal offer at 5pm (2 1/2 hours after the deadline) for $5,000 more than our highest price (he of course knew our highest price and his agent was able to stall for 3+ hours so his wife could see the house). So, the selling agent countered us by asking for our highest price (the ceiling of our escalator) and 10 days to move out after the closing date (while we're paying for the house) or they would go with the verbal offer. What the hell...?

So it looks like their agent is toying around with us a bit by using this verbal offer that may or may not come back in writing. All this taking place while we had dinner plans with our friends and their parents to discuss their upcoming wedding that I, Reverend Johnson, am officiating. What a pain.

In the end, Paula and I rolled the dice and countered the sellers back. We've essentially gave in with the exception that we asked for some closing costs back (to cover the time that they are still living in the house after closing while we're paying on the mortgage) so we have some cash to perhaps update the 1954 interior.

What's really bothered us about this whole thing is two things:

1. We're being toyed around and are essentially competing against a verbal offer that came in 2 1/2 hours after the deadline. Had the sellers realtor been toying us around with the other 2 written offers, I'd be okay with that.
   
2. We've been told its such a buyers market and that sellers are throwing themselves at you to pick up your closing costs and offering you their first-born. This seems more like what it did when we were looking two years ago during the height of the insane house market when we made 4 offers (1 house had 12 offers, 1 house had 8 offers, and 2 houses had 4 offers). We obviously didn't get any of them...thankfully.
   

All of this to say that the house is cute and great and highly sought after. By making our counter offer, we've opened ourselves up to loosing the house. At this point though, I think Paula and I feel okay if we don't get it. If we get it great, if we don't...well the sellers agent will be haunted by the shame of his ethical standard and would be black listed from the northwest MLS (okay, that's just my wishful thinking).

We've only been looking for a week, another great house will show up right? Right? Right? We'll see how our rolling of the dice works tomorrow. I'm not sure what the odds makers would say right now on our chances.