Your agent is the BEST person to advise you. The formula is not zip code + asking price - secret number = price buyer will like and seller will accept. Despite the conditions you describe, when the house is priced well - in any zip code - it will command full price or more.
Your agent has seen the house, shopped the comps with you and knows your circumstances. At the end of the day - don't pay more than you want to pay for the house. Know your walk away price. The seller has a walk away price, too, don't forget that.