Hmmm... Sounds like a page from USC Trojan's playbook:
Setting prices artificially low leads to some guesswork for buyers. Nora Dahr and Firas Azmeh have been looking for a four- or five-bedroom house for themselves and four children in Menlo Park, Palo Alto or Los Altos. The couple, who moved to the Bay Area from Texas for Mr. Azmeh’s job at a mobile-security company, have put in seven offers and increased their budget from $2.5 million to just under $3 million with a large cash down payment and no contingencies. “The challenge now is that sellers aren’t even willing to accept asking price these days,” she said. “You’re almost bidding blindly as to what they want, which encourages you to come in way above ask."
Mr. Lynn said underpricing can drive traffic and create momentum, but he has also seen it backfire. “Sometimes Realtors end up with egg on their faces” if a home gets no offers or only one low offer, he said. “It’s basically like you’re a Hollywood producer and you didn’t do well at the box office.” Other agents say if a home receives no offers, they’ll take the counterintuitive step of raising the price, as a way to indicate to buyers the price they’re willing to accept.http://www.wsj.com/articles/in-san-franciscos-bidding-wars-home-prices-go-ballistic-1440683103