Well, the house went to auction. Apparently, the bank never even responded to the offers. Our agent confirmed that the house is on the auction website. I hope the bank gets like 50% of the asking price for being greedy and not accepting our 95% offer. Yes, I'm a bit bitter. I'll get over it though. I give it another hour or two until I'm excited about looking again.
So now the search continues. Dan and I will re-evaluate the favorites on our list and we'll probably go looking on Friday after work. None of the pictures of them are as appealing as those of that house, but I'm hoping we'll be pleasantly surprised by them in person. And hey, bonus, most of the houses on our list are $10-25K less than this one was, so "yay!" for lower mortgage payments. Thanks everyone for crossing your fingers for us :)