Thanks for your well written and explicative, accurate, reply and you've nailed it on the head with your statement #3. Indeed, buyers always set market values but when sellers are becoming, once again, arrogantly independent and buyers are willing to pay their prices, then, that changes the comps upwards.
As for item #6, that is the reason why I don't have many listings because I do approach my sellers with comps and I do not tell them what they want to hear simply to get their listings. But one of the few listings I now have which I just listed 3 weeks ago at comp prices with the standard 10% little cusion for negotiations, I already had three written offers on it and all were low, low, ball offers. But one of those three buyers came to their senses and upped considerably a second time to where it was inside the ring of negotiations. Seller said no, again, and didn't even counter back. Buyers came up again right on the nose of the price I suggested the sellers' condo should sell. The Seller continued to refuse and not even counter, again. Buyers came up $10K more and seller finally accepted.
So, this seller has proven the comps wrong. Won't you agree?
Now I am working with two different buyers showing them exactly what they want in their buying comfort zone. Each buyer has selected a property to make an offer on. I showed them the comps but, despite those comps, each low-balled their offer. They countered up some but not enough to satisfy the sellers and each buyer stopped at one point. We are back hitting the streets. But, the irony of it is that those two properties my buyers lost out on, went under contract (with other buyers) shortly after our offers. One has already closed at $462K (8K less than the asking price) and the other property is still in PS. Naturally, I shoved that comp in the face of the buyer who low-balled that house at $470K but the buyer's reply was :"Thst guy (buyer) got royally f..... His problem".
Now, I have to be patient with him until he and his wife come totheir senses. But the question is, how long with that take them to "get it"?