It is ALWAYS important to be aware of the active listings in your price range when you list your home. Anytime there are no competitors, or plenty of competitors it completely changes your listing strategy that can optimize the listings market presence.
There is a time and a place for everything. Each property and situation calls for a different strategy to optimize your listings performance. With that being said, listing your home for LESS than the analysis shows can actually help you make more money.
Certain situations call for different things but one of the most popular times to list your house slightly under the analysis suggests is when you have some similar listings that are available on the market in the same price range.
Undercutting these properties or pricing a subjectively superior home at the same listing price can help Buyers bring their offers from that other property to yours.