Think about it like buying a used car.
The staff has done their research. They've found a car that suits them, and has everything they're looking for, at an attractive sticker price. And they go to the bank and show up with the required $$$ to make the purchase.
But I stead of taking the money, the dealer says he'd prefer to hold off, because some other potential buyers want to look at the same car, and might be willing to pay more. But if you pay an extra $2000 above what you originally negotiated, the car is yours.
What do you do?
You can agree to the higher price to close the deal.
Or maybe you decide that while this car was a good fit, it's not the only one out there that meets your requirements, so you'll keep looking for something at the price point you want. Maybe you still live the car, but don't want to pay the extra money, so you keep looking.
I don't think either approach is "right" or "wrong," but that's kind of what happened here.