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.

[Scott MacArthur]

Originally posted by @Matt Dickey:

if the house sells above asking price he recieves 20% of the profit above list.

It is pretty obvious why he would want to list it below market from this statement. Instead of working with a seller and trying to price it to get the highest price, his incentive is to sell you on trying to price it below market where he thinks he'll get above market offers. More money for him, less in your pocket. One could argue that this is a violation of the NAR code of ethics.