Can't make up his mind

I am trying to buy a home from a bank. It is in the foreclosure process. I met with the bank that is foreclosing on the property. He gave me a price and we agreed that I wanted the home but would need to negotiate about some repairs and termite damage. We met twice, along with several phone calls. Now he is saying that he jumped the gun on the price and is going to have the house appraised but that I would have first refusal on the home. We did not write anything down, everything up this point was just verbal. I was waiting on him to take care of all the legal work. I told him that I would give him the earnest money when ever he needed it ( I bank at his bank).
Can I make him stick to the original price? He told me he got his price from a realtor that had looked at the property and told him what he should ask for the home. What should I do? I like the house but am not willing to pay more than what we agreed on.
Thanks
Tabb

[HomeGuru]

Since the purchase of real estate must be in writing to be enforceable, you have absolutely no deal. Not even a first option to purchase.

I kind of figured that. I just don't think that is a good way to do business. We live in a small town and I just don't see how he continue to operate if he is not up front with his customers.
Is it ok for him to purchase the house from his bank and then resale it for a profit?
Thanks
Tabb

[HomeGuru]

That would be a conflict of interest since he/the bank would be in conttol of the foreclosure and bidding.