First of all, did you not have a Realtor representing you as a Buyer's Agent? Second, did the sellers sign the contract too? If they didn't, then you didn't have a fully executed contract and you're basically out of luck. But if both parties signed, and you have a legally binding contract between buyer and seller, then the seller can't terminate just because they got a better offer. I'd go back to your agent and find out what went wrong. If you don't have an agent, that's the problem! And yes, it is very unethical for that seller's agent to string you along like that. I'd go complain to his/her managing broker. At this point you probably can't get that house as they are likely under contract with a new buyer. Might be best just to move on. And hire a REALTOR. Good luck!