Just a thought… when you made your offer what did you base your calculation on? If you are purchasing a house for youself to live in 5k is probably neither here nor there. However if it is purely an investment then you will have done your calculation of what you can expect to receive as a return on your investment. The difficult thing to guage is if the agent was simply trying it on or if there was another genuine buyer. Nevertheless whatever the case maybe you did your sums based on your returns. If another buyer is able to make an acceptable return even though they pay $5k more that is their good fortune. The other buyer may for example have access to finance at a lower rate than you have been able to source or may have a different strategy. So for what it’s worth I’m suggesting that having determined what you believe the property to be worth don’t let an agent push you for more.
As a matter of interest I recently sold a property – I had three very similar offers and sat around the table as the agent rang each of the buyers to ask if (in the light of there being two other bidders) the person would like to increase their offer – I’d expect it would be a common ploy by agents.
Cheers,

Whitfield has just made the Cairns newspaper for having a large percentage rise in the median house price. Personally I take such stories with a pinch of salt.

What is it about Whitfield that attracts you? I see you are in NSW so I’m wondering why you are being so specific – Cairns is a small town there are several ‘good’ suburbs and some very ordinary ones. Some local knowledge is essential if you are considering investing in Cairns.