Types of home sellers

I found bay area housing market is really random right now, and it has a lot to do with people, besides the economy itself.

Sellers ---
Type 1 : In denial
These sellers have seen but refuse to agree with the housing price drop, when it comes to their own homes. They put their homes on market, hoping to sell at similar peak price, which is usually what they have paid for. They are defensive and overly protective when buyers try to negotiate with a more realistic lower price.

Type 2 : Ignorant
These sellers live in their own world for the most part, surrounding housing price drop sound too far away from them, or they may not even pay much attention to real numbers. 'Drop' is a relative word and they barely integrate the new facts into their own home. They put their homes on the market even higher than peak price. In their mind, house prices should always appreciate along the time line. Few buyers would even bother to talk to them before a decent price drop.

Type 3 : Motivated
These sellers want or need to part with their homes. They put homes on market around/slightly above fair market price, and will negotiate/accept a "reasonable" offer. They are more willing to work with buyers, throw in washer/dryer/fridge/storage, making fix or credit back to buyer. While they are motivated, they tend also have their bottom line set tight. They won't walk away with too much of a bargain price, yet in general, it will be a decent deal.

Type 4 : All-or-nothing
These sellers put their homes on the market for a good money, usually above market price. Ironically, they are already financially distressed. Their homes will be listed on the market for months, maybe they take a few small price reduction, yet nothing substantial, and finally the home is on its way to foreclosure. Once the default notice is filed, they take the home off market. Hey, free rent for a year or 2 from now on, why bother ?

Type 5 : Perhaps, perhaps, perhaps
These sellers list their homes with slightly above market price. If homes are sold, then great; if not, let's wait and see. Perhaps the right buyer will eventually come, perhaps the market will turn better, perhaps someone will offer to rent it. Perhaps, perhaps, perhaps...

Surely sellers change, too. Some may become more motivated from being in denial after a while, and some may change from all-or-nothing to all-or-something. With all kinds of sellers, and all kinds of price tags, no wonder home prices are everywhere. Then it is double influenced by all kinds of buyers ...