Wow, your agent really dropped the ball. Before writing an offer your agent should have presented at least 4 or 6 com parables to determine what pricing was appropriate. What were the terms and conditions of your offer? Was it based on obtaining appropriate financing? Can you walk away with your 'earnest' money?. Have you had the house inspected by a licensed inspector who found no issues? The seller's realtor/agent needs to brig some reality to that client.
Personally, I'd walk away and see what the seller does next
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