You price at the top of the range because you can always come down, and because the bigger number is the one the seller wants to hear. He says the buyer who would have paid the top of your range never walks through the door at all, and the ones who do walk in arrive looking for reasons to knock the price down.
He is describing what changed in how buyers shop. In 2018 someone willing to pay 525 would look at homes up to 600 and negotiate down. Now, in his words, they think "I'm not going to go see properties that are listed at more than what I'm willing to pay." So if you list high, "there's a chance the guy that would have paid 525 is not going to go see your house."
He had a seller on the fence and told her plainly: "your house probably worth 525 to 550. If we list at 550, I think you probably get 520. If we list at 525," then — "I think you could get 550." She said she liked him but did not trust the pricing strategy, and told him she was anxious. What he offered her was proof rather than argument: "I have all these this proof, right? I've listed houses like this before and it's worked."
By his own account of what happened next: "We list for 525. 4 days later, we have three offers for 550." The offers started around 525 and came up from there.
The mechanism he names is the buyer's face on the way through the front door. Priced above the comps, "people walk into the home ready to knock it down." Priced under, they arrive ready to like it, and "once a buyer falls in love with a property, 25,000 isn't that much to pull them up" — especially spread across a mortgage at five or ten percent down.
The line he uses when a seller pushes back on all of it: "My job is not to get you what you want. My job's to get you what you need."
“your house probably worth 525 to 550. If we list at 550, I think you probably get 520. If we list at 525,”
This only works if your range is honest. Listing under the range you actually believe is a strategy; listing under a number you made up to win the listing is just a low price. He is not saying underprice the house — he is saying the top of your own range is the number that hides the house from the buyer who would have paid it.
The other half is that a seller will not follow you there on your word alone. His seller signed because he had listings he had taken over after they sat too high, and what they eventually closed for. Until you have your own version of that, this conversation is a hard sell. Start collecting it now: the ones you inherited, what they were listed at, what they finally got. That file is the whole argument.