I live in Toronto (reasonably big city) and recently sold a guitar. Listed it locally on both Craigslist/Kijiji and online on Reverb. Ads were up in both places for about a month before the guitar sold.
On Craigslist/Kijiji I fielded more than 20 messages about the listing. Most of them went something like this:
"Hey, is the guitar still for sale?"
"Yep, you can come down and check it out if you want, I live at ..."
"Is there room to negotiate on the price?"
"I suppose so, what did you have in mind?"
"The lowest you will go"
"I'm willing to do [90%] of what I've listed it for"
"Would you take [20%]?"
"No"
"How about [25%]"
"Sure, but you'll need to make four payments of that [25%]"
On the other hand there was Reverb . . . where I had a three or four offers for 85% of the price listed, and eventually sold the guitar for the full price I was asking.
I don't remember running into this number of retarded people locally before, but didn't get a single remotely serious offer this time around. Made me wonder if it is even worth trying to sell locally any more. If the used gear scene is going extinct here, it's because of the folks using it.