Roger, Short Sale Prices are Definitely for real. These are prices that are less than the seller owes on the mortgage. The mortgage lender then has to approve offers that come in. But here in AZ, I do short sale deals every week for clients. They are great buys.

Many short sale prices are "real". However, I have witnessed many listing agents using a low price to attract buyers. How can they do that, you ask? Agents include the disclaimer that price and commission are subject to bank approval. . Often times, banks won't act as quickly on a short sale unless they have a bona fide offer. In order to attract offers, they offer a great looking deal. Buyers make an offer. The listing agent takes it to the bank. And sometimes the bank says it needs more money. Even if that buyer walks, the listing agent now has an "approved price" that they will change on the listing.
Buyers agents really need to do their homework on comparables and make an offer dependent on that given the buyers motivation and ability to purchase.