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Let's just assume that you're not going to accept an offer with your lowballed salary. So let's not waste anyone's time. Call them back, apologize for giving them an incorrect number, and tell them the salary number you would be willing to negotiate around.
No, it doesn't look good, but it will look even worse if you go all the way through the process, waste everyone's time, and then ask for way more than you originally told them you would accept (or reject it).
"I'm sorry, the $XXX number that I told you was something that I had in mind for a different position. For the position as you described, my actual salary expectation would be $XXX. Again, I apologize for giving you that original number, I just want to be respectful of everyone's time and expectations."
Nothing. If they offer you that salary you either reject or take it...if they are any reasonable person they will tell you this is the average salary going rate...basically bring you up on the salary as a good faith you would accept it..
Now, after letting the hiring manager know what salary I’m looking for, I realize the average is much higher. What can I do?
^Yes, this could remove you from consideration. But if you're already know you're going to reject your original number, why waste everyone's time (which equates to money, and they can't get it back).