Some Recent Hancock Park Examples:
1320 Keniston Ave listed on 3/1 at $799,000 into escrow on 3/14
142 N Irving Blvd listed on 3/9 at $1,299,000 into escrow on 3/12
425 N Beachwood Dr listed on 3/1 at $1,345,000 into escrow on 3/6
300 N June St listed at $1,899,000 on 3/5 into escrow on 3/19
520 N June listed at $2,200,000 on 3/2 into escrow on 3/14
201 N Norton Ave listed at $2,250,000 on 3/1 into escrow on 3/14
This theory is: If a property is priced at, or slightly below its value it will bring in multiple offers and it will sell at a price above its value. It works if a guesstimate of its value is correct and if a large number of potential buyers have been allowed to see it before offers are reviewed. And it also works best for properties that have a lot of emotional appeal. But the downsides are it can lead to “Buyer Fatigue” (buyers give up and get out of the market) for buyers who have lost out on too many Multiple Offers and “Buyer’s Remorse” for the Buyer who got their offer accepted and thinks that they have paid too much. It can also lead to appraisal problems.