Think about the process. People sit down and discuss what comps are in the area and how their house compares. They next hire agents to come through and giver there opions of the home. They then hire a realtor and list list the home. They might build a little cushion in there to account for negotiation and seller concessions.

So after all this I find it doubtful that they are going to logically reasses their situation and come to a conclusion they should accept 25% off the price.

Now if the market continues to change and drifts down 25% it is at that point that they will adjust downward. It would appear to me that urgency is on the buyer when they are low balling. You are basically saying I want to buy, I want to buy, I want to buy.

If you feel the house is worth 25% less you are more than likely going to ahve to wait for a few years before the market agrees with your valuation.