How to handle offer guidance from Auctioneer

Not every seller will agree to an underbid cash sale if they prefer to wait and have more money.

I agree. I have just sold a house to a mortage buyer and got €50,000 more than a cash buyer had offered..
 
Gazumping was the dirty word of the boom, it seems that gazundering is now perfectly acceptable. At the end of the day, everyone is trying to get the best possible outcome for themselves, so why the pretence that the little ol bidder is being screwed on every occasion, when they are trying to squeeze every last drop out of the deal themselves?
 

If you agreed a no sale no fee than don't pay the 1k. If you decided to pull the house after continued negotiation, don't you think the the EA deserves something for his services?