Why are all the prices of Multis WRONG? Who are they fooling?

When I go to an open house, or view a property I have a good idea of what that property will sell for.  

Why is it that so many agents have prices that are nowhere close to what the selling price will be?

I realize there is the possibility that there is one buyer who really values the house at an outrageous price but those are outliers.

I was at a showing for a single family in Worcester, MA.  It was priced at $130k. during the 30 minutes that I was at the property(this was not an open house) there were 10 groups of buyers who visited the property.  I spoke with a couple agents and agreed that the house was priced at least $100k below market price.  

WHY WOULD AN AGENT DO THIS?

In this instance I did not bother to offer for my clients, but I received and email from the listing agent that they received 100 offers for the property.  Who did this help?  So 99 agents probably submitted offers for their clients at above asking price without any direction from the listing agent.  What a waste of everyone's time.

This is not an isolated incident.  It happens all the time.  I would figure that more than 50% of the properties that I visited in the last month were miss priced by more than 10% and some more than 20%,  this one was off by 100%.  And sometimes they overprice by 10-20%

I know there are games being played, to show how many offers someone can get, but that is not helping the market.

AGENTS- Please price correctly so you can save everyone some time