You have the right idea, and I believe it is called the Lemon effect or something like that. The market has a degree of variance for prices, usually the better bikes rise to the top, and the crappier ones go to the bottom because they know they canĀ“t get the same high price.
Also, some people are just idiots and price their stuff way too high. I bought an 05 R6 for 3300 - STEAL!!! and it was in beautiful shape minus usual wear and tear. sometime you get a good deal, other times you get screwed. make sure you give the bike an 100% inspection before giving cash.