I don't believe that you will be giving anything away. You really can not price a home too low because market value, demand will drive the home price. Meaning if you offer your home at a low price and supply plenty of quality pictures online with great marketing, you will likely attract more than 1 potential buyer and that could inflate your price.
That being said, if you have to question your agents tactics of marketing your home, than they probably are not communicating their efforts as well as they should, or they don't communicate because they have nothing to show...
You should sit down with your agent and ask them what they have done to market your home, where your home is visible to potential buyers and what is their plan for the next few months?
Did they just put a sign in your front yard and list it with your multiple MLS? unfortunately that is just not good enough these days, and you could pay someone much less than a Realtor/Real estate agent to do that!
You need an agent with online marketing expertise AND a great grasp on your local market, someone who works full time in RE and is willing to do anything to get your home sold. Your home should be visible on homes like: Trulia, Realtor.com, Zillow, Craigslist, YOUTUBE!, facebook, twitter. Word of mouth is the key. I am not familiar with your local market, so Newspaper ads may be relevant in your market as well. Open houses can never hurt! and they should be advertised. Email marketing to agents that focus on your homes neighborhood/area are also effective.
You can also try offering an incentive to buyers for a limited time...department stores use this tactic for a reason...it works!
I have a list of questions on my website: http://www.circadianrealty.com/selling-my-home
that you can ask your agent, or any future agents you hire... click on the link for Questions to hire your next agent
I would also add to that list:
1. How many homes have you sold in 2010 and 2011 respectively?
2. Of those sales, in how many did you represent the seller? the buyer?
3. How many hours do you average working a week in Real Estate?
4. What is the average price of the homes you sell?
(If it is a good agent it won't matter whether your home is less than their average because they will know that every piece of business is just as important as the next. You can have a 500K buyer that settles and never refers you any more business, or you can have a client that settles 100K of business and is so thrilled with your service they pass you referrals that can amount to much more money than the 1 500K sale...)
At the end of the day, it might be your market, but you should understand what is going on, and your agent should be explaining it to you! Ask them for statistics on your market/zip code with Days on Market, Absorption rate: available comparable homes vs sold homes over a certain period of time, and you should get out and look at some of your competition to see if there is anything you can improve on.