Newsflash: Realtor wanting to list house for 25% under appraised value.

So, I am new to most anything buying and selling homes, so forgive my ignorance. My inlaws are in the process of selling their home, had an appraisal done, and the realtor wants to list it at approximately 25% under appraised value. Is this normal? They are in a resort town in colorado with what seems to be a prety decent market. I would think they would want it listed closer to the appraised value so they had room for repair concessions if needed and maybe to negotiate down a little of that were the case. Am I off the mark here? My wife is affraid they are being taken advantage of since they are both in their late 70s and I don’t know enough about real estate to say one way or the other.