A low price sounds like a great way to attract buyers, but if you go too low, there's a chance your strategy can backfire. When a seller's agent suggests such a strategy, the homeowner should be on guard.

"Typically, multiple buyers will be attracted to the low asking price and eventually the sales price will climb close to market value as competing offers bid up the price," Najm says. "However, the strategy is not without risk in that some buyers will be alienated by a potential bidding war."

Even more worrisome is the possibility that a low price will attract unqualified buyers looking to snatch up a bargain. If that happens, the house won't sell at all, and the seller will have devalued the property with a low listing price.

So if you're going to gamble on a low listing price, Najm says, "it's very important to have a solid knowledge of market conditions before using this kind of high-risk, high-reward strategy."