Some realtors out there are just plain shady!!

[Rod Desinord]

I submitted an offer on a duplex thats listed for 339k for 350k. The realtor emailed me back saying they have offers above that. I said ok i will be sending an offer over for 365k and he wrote back saying.... Well we are currently working with an offer thats 5k less than your 365k and its a conventional loan. (This whole conversation happened in a 10 minute block by the way). what confused me was my offer was cash and I could only assume that he must have had both sides of the deal on the conventional offer that his seller received smn. Anyone else encounter this problem?