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Why is it first in best dressed
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If the seller posts a price that's what he's asking, the first buyer should be entitled to the item, if you think about it, that's the way most selling works. As steve said it's not pleasant to have a deal pulled after you have reached an agreement simply because someone has offered a higher price (I have had that happen).
The act of gazumping in real estate is frowned upon and is considered unethical practice.
I guess it comes down to social conventions and etiquette, it's just not cricket to pull a deal when a better offer comes along.