Under price property to start bidding war?

Question

I read an article in in one of the NJ RE blogs stating that

â€œif you under price by 10 percent, you are going to get a bidding war, even today.â€

The article say's that putting in a lower starting price will get the house more attention and ensue in more offers which can lead to the seller getting the price they really wanted for the house or even more... 
What's everyone think about this strategy in today's market and has anyone tried it?
I can link to the article if it is allowed...

Calvin N. · Answer

It may work in some markets but in my area all the offers I see are still 10-20% below the asking price, regardless of how low the asking price is!  Everyone things because of the market they can just take 20% off the listed price and buy it.  Of course, the sellers disagree with that theory.

Lee V · Answer

Here in Stockton area of CA, many realtors are going that exact route with all the foreclosures. It started about a year ago, when homes were price as low as 20% under what they were going for. These homes were getting 15-20 offers on them. I lost the bid to one deal in which it was listed at 125k, I bid 155k, and it ended up selling for 170k. That is crazy! The sad thing is that house, is now really worth about 100k, so missing out on it last year was a blessing.