Why East Bay Homes Sell in “Bidding Wars”

“I hate the bidding war,” a buyer once told me. “It’s ridiculous.”

Here’s the thing: in the East Bay, it’s not really a bidding war—it’s just how we price homes.

The Origins of Underpricing

The custom of listing 20–30% below a home’s expected sale price took root in the mid-2000s, as the market began to rebound after the recession. A few locally known East Bay agents started doing it to create momentum. When it worked—selling homes faster and often far above list—others quickly followed.

The logic was simple:

• Attract more buyers by advertising a lower entry price.

• Maximize competition once buyers toured the property.

• Surface hidden money from buyers looking at lower ranges who, when pushed, actually had more to spend.

It mirrored an auction more than a traditional sale, and over time, it became the East Bay norm.

Why It’s Hard on Buyers

Yes, it can feel brutal. Buyers fall in love with a home, only to see it sell hundreds of thousands above asking. That’s where your agent comes in.

A strong East Bay agent knows:

• How to read between the lines of list price and true market value.

• How to run accurate comps and anticipate the offer range.

• How to use relationships with listing agents to gather key information.

• And most importantly, how to position you to win without overpaying blindly.

The Bottom Line

Is this pricing strategy “right”? Maybe, maybe not. But it’s the East Bay custom, and if you’re buying in Piedmont, Montclair, Rockridge, or the Oakland Hills, you need to understand the rules of the game.

Think of it less like a bidding war—and more like a sophisticated auction. With the right strategy and the right agent, you can compete with confidence.