Did some more digging on the ebay community boards and found out that most items that seel for over $500 will have a similar email sent to the 2nd highest bidder. Such as I was.
If it was a legitimate offer it would ONLY come through My Messages on my ebay. While I did contact the seller, I only did so through ebay, NOT using the email that was listed in the offer. Boy did the email look legit!
Thanks for the ideas.