Depending on the market, a lower list price can work out really well. If demand is high and supply us low, a low list price and not accepting (or at least responding to) offers until after a specific date can result in a bidding war increasing the price 5-10%, as you've increased your exposure.
This tactic has been used to great effect over the last few years in the area North of San Francisco. I bought a house a year ago, and this was particularly annoying as it made it hard to determine what houses were really available in our price range, since listed prices were often fictional. Brokers suggested coming in $5k to $15k above listed price as an initial bid if others seemed interested, just so you would be taken seriously.
My experience has not been in "hot" real estate markets, so I've never experienced the low listing price as a tactic other than trying to sell a house faster. Most houses in my direct area sit around for at least several months, if not several years. I'm sure other areas are substantially different.
This tactic has been used to great effect over the last few years in the area North of San Francisco. I bought a house a year ago, and this was particularly annoying as it made it hard to determine what houses were really available in our price range, since listed prices were often fictional. Brokers suggested coming in $5k to $15k above listed price as an initial bid if others seemed interested, just so you would be taken seriously.
Edit: s/$15k to $15k/$5k to $15k/