Zillow isn't the end-all-be-all pricing index for the market. Take a look at Redfin who estimates you at $484,737:

https://www.redfin.com/NH/Walpole/56-Laclair-Rd-03608/home/88030354

Next, read up on just how bad Zillow's data scientists failed Zilllow when it came to pricing the market:

https://towardsdatascience.com/invaluable-data-science-lessons-to-learn-from-the-failure-of-zillows-flipping-business-25fdc218a62

Feel better yet?

My hot take is that prices should go down for everyone as rates go up. What you, and everyone, can afford is a combination of principle and interest. Therefore, as rates go up, what you can afford in principle is less, because you are paying more in interest. Combine all of this will a staggering economy due to high(er) interest rates and you have fewer people that can afford homes.

As far as what you should tell the realtor? Nothing. Like all of us, you likely got your house because you were the high bidder. No one was willing to pay more than you at the time it was listed. That being said, love your house. It's beautiful on a nice piece of land. Take care of it and maintain it well. No one is getting a good deal buying anything that is a 1:1 with many people looking to buy it.