Listed way over value

[Tom Carroll]

I'm new to REI so there's probably a very simple answer I'm overlooking but I can't seem to understand why sellers are listing at such inflated prices.

I'm looking in Green Bay, WI and am still at the preliminary stages of crunching numbers and prospecting for a Realtor (suggestions welcome). All the properties I've looked at are listed at least 20% above the max I would pay in order for the property to cash flow. These properties have been listed for several months. Working from a rough estimate of NOI and a cap rate of 6.4% I get valuations 15-25% below list price.

Is there something wrong with my math or what else am I missing?  I know I've over estimated expenses and vacancy which will hurt projected cash flow but I also assume that there is at least one unknown variable that I haven't accounted for.  Is putting in offers that much below list acceptable for multifamily?