There’s a weird psychology happening now around SF’s over-heated and wildly expensive housing market. Basically, if realtors put things on the market for what they actually should be priced at, given all the demand and recent comparables, etc., they just sit there. But as several realtors explain in this Chronicle piece today, under-pricing means people think they’re getting a deal, and then they start a bidding war, leading to many homes selling for well over their asking price — in some cases $1 million over asking.

Source: SF Houses Go For $1 Million Over Asking Because Realtors Are Under-Pricing Everything: SFist