It all depends on how the seller phrased his responses to you, and what level of English you both speak. If he said someting along the lines of "I have 2 offers at $350, I am accepting offers from $400", then you should realize that you are still in a situation with multiple offering parties. If he said "first $400 offer takes it", then that is a firm offer. It was probably somewhere in the middle "I'm looking for at least $400", etc. Asking "your lowest price for the domain" is vague too.
Since you knew he had other offers close to yours, I think you are naive if you think you had a solid deal at $400 - of course he is going to let the other interested parties know the current offer is $400 and see if they move higher. You should counter-offer, or move on.






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