There is no doubt that seller's expectations remain unrealistic in some cases, but buyers may be even more unrealistic.  Who can blame them when they are being hit from all sides by the media parading various experts who may not even be in the real estate business and who play on their fears about Real Estate.  It is sad that all this negative press has contributed greatly to the downturn in real estate all over the US.  Some areas were overdue for a market correction as the wildly escalating home prices just could not last in places like Florida, California and some of the north east.

Another strong factor was mortgages that were offered to people who might not have qualified without the interest only loans or loans where the rate increased in a couple of years to a figure above what they could afford. 

Regardless of the causes and how much the media contributed to it or the mortgage industry made  loans in their best interest only, we Real Estate Agents are left to do the hard jobs of convincing our clients that they may have unrealistic expectations.  Show them the comparables, show them the data accumulated on solds, average home prices, median home prices, etc.  Even then, there will be many buyers who will either not believe you, or want to make all offers so low they they are off the charts and some sellers who just cannot believe their home is worth less now.  This is want they are being encouraged to do everywhere they turn by those "experts".

It is a difficult time for agents, but I am sure we will get past it and at some point in the future, their expectations may become more realistic. Until something else captivates the Media interest and makes the front pages/headlines of the day, that will not change.  Unfortunately, gas prices are making the news every day.

There are still buyers and sellers out there who know and understand what is happening and whose expectations are more realistic.  Those are the jewels of our business right now.