Some home sellers decide they ought to round up their list price a bit because surely buyers will expect them to negotiate.

This might result in a house worth $400K being listed for $410K.

Some home buyers expect all listings to go under contract quickly at or above the list price. 

This might result in them assuming that house listed for $410K will really sell for $420K or $425K.

In such an instance -- a home buyer deciding whether they are willing to pay $420K or $425K for a house they believe is worth $400K -- likely results in the buyer not making an offer at all.

So...

Sellers - Price your homes reasonably - don't round up too much, or any at all, above the market value of the house.

Buyers - Consider the list price as the list price - don't assume every house will sell for $10K or $15K or $25K more than the list price.  Some will, but not all, and probably not most.