A home that has a large market for ( many potential buyers ), Shows very well, and priced competitively often will have strong demand in the current market in Toronto.
Case in point 586 Fred McLaren recently sold in Markham, the agent listed the home at a very competitive price at $599K. A very similar home, same builder, size, square footage and almost across the street from 586 Fred McLaren sold for $650K a few months earlier.
As the agent representing a buyer, my buyer offered $625K. On offer date the sellers received more than 6 offers and the home sold near $690K ( more than $90K over asking ) and no conditions ( finance and inspection ). This is frustrating as very competitive teaser pricing gets the buyers emotions going and induces too much interest. This is great for the seller selling the home. I have had my own bidding wars and so can appreciate that buyers need to be patient and look outside the box. Go for a property thats in the location you want, but does not show well.
If you have a unique home or one that is not updated / doesn't show well, then often it will not interest a large number of buyers. Consequently when you price a cluttered or out of date home with a below market price in the hopes for a bidding war hoping to get more - can often fail in this scenario, making it difficult to get more than your initial asking price.