It's a very old ploy. They all quote top price so that they get your business but esentially they are lazy and want to sell it quickly. Reducing the price is the easiest way.
And yes, they will have cash buyers, developers looking for something to spruce up and sell on quickly for that 50K margin and some.
If your house is worth what you think it is compared to others in the neighbourhood stick to your price but ditch the unscrupulous agent as soon as you can.
And don't forget the time of year. It can be a dead time in the housing market. Families are on holiday. Exceptions to this can be for houses near good schools or universities where buyers are looking to be in situ by autumn term.
Buyers can be astonishing in their cheek. I was tempted to sell my house a while back. One man offered me 100K below market value because "that was all he could afford". I know agents are obliged to pass on all offers but this agent was asking me to accept it. I pointed out that I was his client. I would be the one paying his commission and suggested he show the man something he could afford.
My other pet peeve is when they try to knock down your price on the grounds of the house "needing" a new bathroom or a new kitchen because it doesn't suit their taste. My response is always this. I use that bathroom and that kitchen every single day. Everything in those rooms is clean, in good condition and in good working order. You may WANT a new bathroom or WANT a new kitchen but why should I pay for it?
You need to be tough. If someone wants to live in you home (as opposed to using it to make a fast buck) they will be happy to pay the true market value.