Advise on this deal....where did I go wrong?

[A Miller]

I had a seller contact me who owed 189K on a SFH. Tax value had the home at 364K and comps in the area came in at 330K. Its a great neighborhood so I took the 330K as the ARV and 65% of the ARV brings me to 214,500. I took out 5K for paint and carpet (home is in great condition) and 5K for my fee since I was going to wholesale the property. I made the offer at 205K. They asked if I would pay closing costs and I said I would split them. Today I found out that they have had other offers that according to the seller are significantly higher. I am open to any advice as to where I may have gone wrong. Thanks!