Agent Wants to Walk Away (Too Easily?)

[Account Closed]

Property listed for $218k.  It's been on the market for months (quite rare in this area).  I offer $150k and send over a whole report that shows how I will lose money at $218k.  They counter at $205k.  But according to my agent, their agent says this is the lowest they've ever countered, they are not in a hurry to sell because they are collecting rent, and that we might as well not even send any other offers other than $205k.  

I tell my agent I can't possibly pay $205k.  I wanted to counter at $160k lol.  She is taking the other agent at his word and saying we should walk away because they are not going to go below $205k.  The stuff he's saying just sounds like negotiation talk to me though.  What do you think?