08/28/2026
Imagine you have a vintage comic book that usually sells for $100 (the market price), but you list it for sale at just $70 (the asking price).
What happens? Instead of just one buyer, a crowd of people notices the bargain. Because everyone wants it, they start outbidding each other:
“I’ll give you $80.00”
“I’ll pay $95.00”
“I’ll give you $115.00”
By pricing it low, you started a bidding war, and it sells for way more than your $70 asking price.
In real estate, this is a deliberate strategy. Here is why it works:
The Magnet Effect: A lower price catches the attention of way more buyers, creating a massive wave of interest right away.
Buyer Competition: When buyers show up to an house priced below market and face competition, panic sets in. They realize they aren’t the only ones who want it.
Fear of Missing Out (FOMO): To beat out the competition, buyers submit offers well above the asking price just to ensure they win.
The Bottom Line: Pricing a home low creates intense competition. The asking price is just the starting point. The final sales price is driven up by buyers trying to outbid each other.
There are many homes on the market but good luck trying to convince a buyer with a made up mind.
