The house has been in the market more than 3 months due to vendors unrealistic price expectations. We made an offer about a month ago but vendor wants over $100k more. We pulled out. On Saturday we received a phone call from REA and he told us that our offer was the highest one they have received, but they think it's worth more than that and can we increase our offer and meet a vendor half way? He did not give any quarantees that a vendor even would accept that. Not sure why he would think that we would increase our offer when knowing that our offer has been the highest? Has anyone experience anything similar and what would you do? This house would be our PPOR and forever home.