According to a recent survey, sellers have identified the top three challenges they have when selling their house.
Understandably, the low inventory that is creating the seller's market also makes it hard for the seller to find a replacement house once they become a buyer. The unrealistic expectation of price, is not something I've seen, primarily because I advise the sellers on the prices of the comparable properties in the area. Appraisals are a problem nation-wide though as there are often not enough recent sales within the half mile radius, giving appraisers little to base their calculations on. Remember, the difference between market and appraisal prices is that a market price is what a buyer is willing to pay for a house and an appraisal value is a conservative number that the banks are willing to lend on the house.