Kristin,

I think you are absolutely right about pricing.  I've heard the phrase recently (a LOT) - It's a Beauty Contest in the middle of a Price War.  Sellers need to understand that the upgrades and decor choices they've made (things like granite counters, and hardwood floors) could help their home sell FASTER but not (necessarily) for more money.

Buyers are going to be out this weekend and through next weekend possibly, but keep in mind that the Tax Credit expiriation means that if they don't have a deal in escrow by the 15th or 16th, they most likely won't be able to take advantage of it (depending on any extensions).  So, if you are on the market today...get it priced RIGHT (take the next best competition and get YOUR price $2,000 below it!) to make the best advantage of the buyer pool that IS actively looking.