Some prospects have that understanding of what is reasonable, just like some startups really think they can find experienced engineers in SFBA for $60k and 10 bps, but the actual buyers who successfully consummate transactions definitionally do so at market prices, and market prices for small SaaS apps are 3~3.5X SDE (approximately profit w/ no deduction for taxes or owner salary), with deviations above and below based on individual circumstances like you would expect for any complex sales.

I've done it twice. FEI (the broker I used, linked by others) was very effective at bouncing people with very unreasonable expectations of market prices; I felt like my time was not wasted with non-serious parties (relative to my prior expectations of how many there would be).