It's part psychological, but also part mathematical in nature.

In a down cycle, where prices are depressed and the psychology of the market is pessimistic, then values are down and below "replacement cost".

Right now we have college loan debt, credit card debt, and I am currently pursuing a master's degree in counseling psychology.

I teach Psychology 100 at a community college.

I believe it is good practice, google "charm pricing" or "psychological pricing".When selling you price under the round number because you want it to appear lower, when purchasing you want your offer to appear stronger/higher without significantly raising it.

I also think its psychologically harder to push for these things after you sent the money and assume you will be buying the property than when you are just thinking about buying and have not bought yet.  

Investor Psychology?

The point is to get into a position where you can liquidate as a young investor but still stay important to, and connected to, your veteran/mentor investors who don't need to liquidate.This Topic is in the psychology section because "psychologically" you have to look at the house flipping business with a different mind set...see yourself as an intern for the first few years.

It depends...every seller is different and you have to be able to read the seller and determine how to direct the conversation.What you are asking has to do with sales, the psychology of selling and negotiation.

well sounds like seller is using reverse psychology then :)