Off Market deal where seller wants to re-write my offer

[Ted Klein]

So I submitted an offer this morning on an off market deal on the place I am living in thru my agent and she calls me later telling me that the owner wants his agent to write the deal.

So shortly I get a PSA back from the sellers agent that is basically the same as what I submitted except they added a low appraisal addendum, a notation that there would be no sellers commision and backed my agent out of the deal.

My agent said that the sellers agent has put himself on both sides of the deal and there is no money in it for her which basically leaves me with no representation. 

I am ok with the low appraisal addendum as I know the unit next door was just appraised and both units are comparable and within market comps.

Has anyone heard of this type of deal where the owners agent has basically submitted an offer to me the buyer?

How would you handle this situation?