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If you did not say it was non-refundable and have her sign something I agree to giving it back as well. It sucks and in my opinion not right, but unless she signed something nothing really you can do.
Come on, Seriously?
Why would you think you should be $500 dollars richer off an aquaintence?
From what I'm reading she thought it was a done deal too, and YOU still have the bike so did the $500 ever really belong to you anyway?
Morality -vs- Technicality?
Somone once said, "The right thing to do and the easiest thing to do \\;are rarely the same thing."
 \\;
Give it back, but I would nicely tell her someone else may not have been so considerate.
You did the right thing by giving it back and also the wrong thing too.
Wrong thing is when you make a sale make it binding, always make the deposit non refundable, always draw up a bill of sale draft as a sales contract have them sign it date it and then if they back out there's no question about the deposit unless you unbind the contract and give it back.
I have learned the hard way trying to be nice and hold stuff for folks,, first money in hand takes it home when I sell something.
This is a good reason to keep \\;any deposit fairly \\;small. If it was $20.00 \\;instead of $500 then you could keep it for the hassle and they should expect to loose it f they back out. \\; \\;
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