Our agent is more shrewd that I realized. She's aggressive in very subtle way. We went to view the house we're considering buying again. (3rd time but other 2 times were open houses) We looked much more closely this time, and of course found some issues that could be obstacles to our even making an offer.
Upon discussing the details with my wife and daughter all night afterward, we concluded that we could go forward with this house, but would have to change a few things of which could end up costing $10 - $15K. That would make the house a perfect fit for us. So, instead of walking away from the deal, we've decided to just offer 10-15K less than we were considering offering beforehand.
Our agent seemed to think she had a definite offer coming. It was interesting the way she tried to persuade us to go forward, despite our concerns, but in a very subtle way. I kind of liked that approach and could see that working well when trying to persuade people to buy our house.
We shall see what happens ...