Push on the appraisal question specifically, because that's where the $34k either exists or doesn't.
An appraiser starts from closed sales and adjusts for condition. If the only closed sales are unrenovated at $300k, the adjustment for a full gut has to carry the whole gap, and adjustments of that size get scrutinized by the lender's review. In a state that doesn't make sale prices public, and roughly a dozen don't, the appraiser is working from MLS data and whatever the local practice allows, which genuinely narrows what's available to support a stretch. Your agent isn't inventing that constraint.
What you can do about it is concrete. Build an appraiser package: permit records, the scope of work, dated photos of what the mechanicals looked like before, and any pending or under-contract finished comps she can get a price on through agent-to-agent contact. Ask her directly whether she has ever gotten an adjustment of that size supported in this market and what happened. If the answer is vague, that's your information.
The other route is list price versus terms. Listing at $349k and finding out in week six costs you carry plus a price-cut stigma that shows in the days-on-market history. Listing at $329k with a clear "nothing else finished exists" marketing position and letting competing offers push it is a different bet with a shorter feedback loop.
One thing about incentives that people miss. At 2.5%, the difference between $315k and $349k is about $850 to her and roughly $34k to you. She is not fighting hard for that $850, so a low recommendation is usually risk aversion or a real read on the appraisal, and rarely greed. Ask her to show you the three closest condition-adjusted sales she's relying on and where each adjustment came from.
Also confirm what your lender's buyer would face on a low appraisal, since who eats the gap is a contract term you can set.
