I used an exploding offer effectively once. I was buying a house in 2002, during the crazy bull market on housing. Houses in the neighborhoods we were shopping regularly went for more than list, with competing bids. We finally found a house, at the very top of our price range, and put an offer in for it just a few hours after it first listed - for list price. The seller's agent was furious! She really wanted to drag it out to the weekend and get a bidding war, which we absolutely could not afford. But what were they going to do... turn down a list price offer? Why not just sell it at a higher price, then?

We still have that house, 12 years later. It's finally worth what we paid for it again. Sigh.