We didn't budge on our offer (:
It may be the way the game is played but I will play on my terms and if it costs me losing out on a house, so be it. There will be more. So far we have 5 houses we've purchased so I can't complain about that.
My purpose for this thread was simply to ask how often it happens and if others experienced it as well, not to get into a debate of right and wrong. I get it after reading the replies that this kind of thing is common so that is what I wanted to know and will go into future offers with that knowledge, not that it will do any good granted.
Those folks that accept and even encourage RE to do whatever they have to do to get the highest offer, including lie (bluff, whatever you want to call it), that's up to them. I will say though that knowing they give the green light for that type of business practice would make me think twice about doing business with them as well. Because there is no doubt if they encourage or approve of others bluffing, lying, etc., they themselves will do the same exact thing. It's just not the way I operate. So hopefully, we can agree to disagree.