If everyone else does that and you list your $1.2m home for $1.2m, no one that wants a $1.2m home will even see your $1.2m listing b/c their search criteria is from $800k to $1m. Maybe up to $1.1m if they ignore their realtor. But no one who wants a $1.2m home is including $1.2m in their search criteria.
The people who want $1.5m homes search for $1.1m to $1.3m, and they will see your $1.2m listing as the shittiest home asking for $1.5m that they have ever seen, the seller is obviously delusional, don’t even bother offering.
Not sure if you are bay area or not, but if so…. this isn’t new. ‘Tis our Quant Tradition. Probably from the Ewoks thar live around here. We are exporting our traditions to the rest of the country, so if you are not from the bay area, you’re welcome. :p