Just because you state that you will not do any repairs and...your agent conveys this information to the buyer's agent does not mean that they will not still ask for something to be done. If the Buyer's agent explains this to the buyer and, the buyer requests for items to be repaired or replaced, the buyer's agent must submit the request. Regardless of agent or seller comments. Dont hold this against your agent. It happens all of the time.
As for re-listing and reselling after inspection, if you know that there is an existing problem, you must disclose this to a buyer. If you have knowledge of an existing problem or, potential problem....disclose, disclose, disclose. This applies regardless of an inspection report or not. If an inspection report uncovers something that you were previously unaware of....you now have knowledge and must disclose this to a potential buyer at their request and from a contacted buyer during escrow regardless.
Repaired or not, you must disclose that a problem existed and that the problem was resolved by a licensed contractor or even if the issue was repaired yourself. When in doubt....disclose.
Will this hurt your chances of selling? Unless an issue exists that you were previously unaware of and that issue is severe.....probably not. If the issue was severe and was uncovered after close of escrow, that would not prohibit the buyer from taking action against you. On older homes, I do recommend that seller's hire a very good inspector prior to listing and then address any issues before they become a problem. And, always disclose this to the buyer.
Many older homes (my own included) have "knob and tube" wiring intact and active and it is not inherently dangerous. The common concerns are:
1) The wiring may not be appropriately sized for modern uses (overheating may result)
2) It is not intended to be covered by insulation or other materials (it can be a fire hazard in this instance)
3) homeowner modifications (DIY wiring) can result in problems
4) It can be brittle and in poor condition
5) Many insurance companies will not write policies for homes with knob and tube, or can charge a ridiculous fee for it.
In the first instance, so long as the wiring is served by a 15 amp breaker and not brittle (no deterioration of the insulation) it is unlikely that overheating will result. If insulation or deteriorated wiring is present, replacement is recommended. The last issue requires lots of shopping insurance companies.
The wiring in my home is clearly visible in teh attic, in good condition, not insulated over and operating as intended to supply standard outlets and bedroom lighting. They are connected to 15 amp breakers and checking the operating temperatures with an infrared thermometer showed no difference between knob and tube wiring and romex (new style) wiring in the attic.
Electricans can see a $12K- $15K payday to replace the old wiring, so they often recommend replacement. The best thing to do is get a number of estimates on it, including at least on "old-timer" and have them explain their concerns and specifically why ther recommended replacemenet or why they do not. This will give you the best clue as to how to handle your wiring.
As for the resale - I think the first answer was the best: use it as a marketing tool!
Where there is one buyer, there is more. It sounds like your agent is trying to pressure into the repairs. Sometimes it is worth it to just do the repairs or offer the buyer credit to be done with it and move on to the settlement table. It depends on your situation. The way I look at is if it were my home and the buyer was not asking for too much I would probably agree to the concession, but if they are going overboard, putting it back on the market is not that big of deal as I believe where there is one buyer, there is another one. And yes, you can always update your sellers disclosure to reflect new info. Sometimes what may be a big issue to one buyer (old wiring) is no big deal to the next buyer - who may be an electrician or has a friend who is an electriciian. If I am aware of a defect that might come up again, I would recommend to have your own electrician come out for an estimate. That way if someone asks for it again, you already know how to respond to it ! Good luck : )