Gutted

So we viewed the flat again last night. The kitchen wasn't as small as I remembered and actually rather charming. But the Estate Agent tells us three other couples are also interested in it. This morning we make an offers, a bit below the asking price. Seller wants more. We raise to the asking price. Apparently so do the others. We can't really go any higher. So now the owner has to decide what to do. We have our finances ready go, are first time buyers and have a fairly good deposit, but I assume so do the others. So how do they decide? I guess someone will crack and offer them more and they will win.

I know the old cliches that there will be other properties and if it doesn't work out, it wasn't meant to be, but I'm very worried about whether anything else will come up - this was the only one we have seen that was even fit for human habitation.