FTF deals are always "pending inspection". And if they'd agreed on a price and the agreement was " I'll take it for $xx if its as advertised" then they've made a deal. Taking a "better offer" is a douche move.
I agree with NikatKimber. FTF is always pending inspection. If you agreed to meet then it is basically a done deal. Now if it was posted I will not hold, first one with $ buys it, then it is another story.