I have always encouraged sellers to consider offers.

Michael, it is so important to set the sellers' expectations at the listing presentation.  And with buyers, the same thing - they must be prepared to go back and forth a bit to get their home.  And it's the agents with great negotiating skills who are going to make it in this market.  

Sellers who don't really want to negotiate should start out with a very low price or, better yet, not put it on the market.

I hope many of them read this and by the way, I couldn't agree with you all more and ALL of your comments so far on this topic...

On top of what has already been said in the above comments, if the seller isn't willing to negotiate for a few days, the listing price on the home better be in line with the Sold comps within in the last couple months and it better be anywhere from great! to move-in condition. The few people out there buying homes want it nicer, newer, and they want a steep discount. And if your seller isn't willing to negotiate, they will find a homeowner that will. That's the bottom line.

So true Joseph, So True!

There is an old saying " Activity Spawns Activity " Example. There was a home on the market here locally FSBO. The word on the steet was that the Seller was facing a possible foreclosure. I spoke to the Seller and did not come away with that impression.

The Seller did want full value, About $400,000. I thought was a little high for condition and location. Seller eventually listed it employing a Limited rep ( Seller sells on their own and pays a flat fee to the agent for placing it in the MLS) A couple of offers came and went till eventually after 2 or 3 price reductions the price was in the Mid $300s.

My Buyer loved the home. In fact thought the price was excellent. However friends kept working on my Buyer saying that no one pays full price. In fact it is almost maditory to offer less. I maintained that an offer should be submitted before someone else came in. The Buyer would not budge still preferring the advice of friends. After a few days we finally wrote the offer. The very next day the Seller called and said they had the paper work and would review it along with the other offers they had recieved.

There is a moral and probably a moron in there some where.

Even though it is a "buyers" market, buyer clients need to understand that any deals, discounted properties, or properties that are properly priced and are nice homes, that every other buyer looking for the same will be looking at that property as soon as it hits the market (the other homes will sit for months). Buyers start to think since it is a buyers market that they can just have it all. If they find a home that is in budget and they want the home, they should jump on it, at least submit an offer before those other offers come in.

I recently submitted an offer on a property which had another offer coming in at the same time (which I just knew would happen as soon as I saw the listing), so I had my clients write up a nice letter to the seller. Just when we thought the owners took the other offer, the listing agent called to tell me we would be getting a counteroffer. Listing agent then tells me the sellers chose to negotiate with my clients because of the letter they had written. Home inspection is tomorrow afternoon. :>)

Generally, I give sellers two prices, the "high" and the "low," so I've already set their expectations for negotiation. If we get a full price offer at the high price, I'm a hero. If buyers ask for concessions, the sellers are prepared, and I'm still a hero because I leveled with them and explained all their options. We have little control over what a buyer may offer, but we have a lot of control in negotiations.

This is happening on the $300,000.00 + properties.  Below $300,000.00 the market is fairly strong with some multiple offers from first time home buyers.