The market sets the price, the sooner a seller can accept that the better. It will make it easier to accept a lower price. You should not be offended--this is what is happening now.
Your items that you always wanted to fix in your home, but were waiting....well the time has come. Fix all those items now. A buyer will walk out if they see things are not fixed or updated. Buyers will be picky.
Educate yourself about the neighborhood market. Not all homes sell for the same price. Some may have gone "short sale" (where the bank accepts a lesser amount than owed), some may have sold to family's kids. Make sure you know all you can about homes for sale and sold around you. Go with your agent previewing all available comparables for sale.
Work with an inspector to inspect your home pre-sale. They will be impartial and find flaws that a buyer or buyer's inspector would have found. This gives you time to fix.
Consider paying buyer's points or closing costs at closing as part of the sale. This is a sweet incentive you can provide for buyers. Interest rates are low now, so they may not need a lower interest rate, but they may appreciate lower closing costs.
If you want more direct information--contact me at www.myhomesguide.com