If the listing broker/agent is worth a crap whatsoever they will have  a much deeper network of buyers than to just stick it on the MLS.Even if they didn't have a deep network they should be advising the seller to keep reducing until they hit the sweet spot.For example why reduce 40% when you can go down 10% and if priced right buyers will be on the property like bees to honey.If a seller has to unload quick sometimes they will take a deeper discount.It all varies property by property. 

Plus the L.A. was so emotional about it, lol--which led me to believe they didn't have any other offers.

It was a mortifying tail between the legs moment, but my primary emotion was blame towards the tenant.After we sued and won, we never saw a dime, but the judge proclaimed that we were right.

I believe your emotions are in the way here as anger and fear of an eviction is not the way to handle it.  

Also it is just a rough screening tool to see if a property is worth doing a deeper analysis on. 

You are letting your emotional stories paint a picture of how your future should look like.

You're looking at the house as a financial investment, while simultaneously dealing with someone that is looking at the house with an emotional investment; the two do not mix.  

When looking for a good house to look deeper into, what are your parameters?

My wife is also a great emotional break on my ambitious plans that I hatch.  

Because people who are in an emotional state are preferable than people who are indifferent.