It happens all the time. I don’t think people believe me when I say if you want the house you need to make an offer. Some buyers like to wait until the price goes down a bit. The price may go down tomorrow or in six months or someone may buy the home today. If the home is over priced, offer less. When the price does go down sometimes several buyers will make an offer. It is a buyers market but not all houses are equal and some go in a hurry.
Every year I have clients who need to miss out on at least one home before this all makes sense.