J,
The purpose of this strategy is to get as many calls as possible whether they be from investors or retail buyers. From the retail standpoint if a buyer is pre-qualified at $85k but I list the house at $99k I am missing a potential deal because I AM willing to sell at $85k. The same goes for an investor also who wont look at a house unless it is in a certain price range.This way I at least get to talk to them and if the house is out of their price range I can add them to my potential client list for future properties. I know what I WANT but I also know what I WILL take.
Others may ask why sell and take a hit of $15k when you can hold out for the right buyer? In Georgia as everywhere else there is an abundance of deals so I would rather sell "now" and move on to another deal. "A bird in hand is better than two in the bush".
The way I see it serious buyers have done their homework about the house and the area and will make serious offers. Don't YOU?
And finally for the people who want to be jerks and try to offer me $1 my answer will be "CLICK"!