The mechanism relies on buyer psychology as much as pricing math. A home that appears to be a strong deal draws more showings and more competing offers in its first days on market than the same home listed at or above expected value, and in a low-supply market that competition can drive the final price past what a higher starting number would have achieved.
The risk is real: if the strategy misfires and only one offer comes in, the seller may close below what a straightforward market-value listing would have brought, so it works better with an accurate valuation as the floor, not a guess.
Joel Dyck evaluates whether this approach fits a specific Saskatoon property based on its condition, its neighbourhood's current buyer demand and how it compares to what has actually sold nearby recently. Get your hand-reviewed valuation from Joel Dyck.