RE agent underpriced home with hope of mult-offer - now one FPO

[Matt Dickey]

My real estate agent told me that the Denver market slowed down after the Memorial Day weekend and encouraged us to price our house lower than what we expected to get ($350k list price). His logic was that we would get multiple offers the first weekend it went on the market.  The house went on the market on Wednesday evening. We now have a full price offer and feel like we under priced the house.  A house downt the street just closed for $367k.  Our house has an updated kitchen with granite and updated appliances, I'm thinking is worth $360 to $370+.

My RE agent said we could give a counter offer, is this normal in any scenario?  Should we take the house off the market and re-list?  Could I tell the person that placed an offer that we want one more weekend to show the house?

Feeling inexperienced, and I don't want to leave money on the table.