The problem is that it is an emotional topic for sellers. Most sellers think that
their domain is worth 4 figures or more at the least while it may not be the case often.
I have found many squatted domains that I will happily pay say $200 give or take but I am shelling out $5000 for a domain name (unless I have free VC money to burn :))
Ultimately, I end up buying a domain that is not taken and live with that.