For those who have purchased a home or are real estate agents

How much earnest money did you put down on a home? My husband and I put an offer in on a home listed at 174k, we offered full price. They’re asking for a $4200 escrow, when we offered $1000. We’ve gone up to $1750 but they’re still trying to get $2600. I think it’s a bit ridiculous to ask for so much on a home that’s listed so low, my real estate agent said they are usually about 1% of the purchase price, so she can’t think of a reason they’d need such a high escrow unless they were getting tons of offers, but that doesn’t seem to be the case. Can anyone offer any insight? I just wanna hear from someone who doesn’t have skin in the game.