How do you decide on list price for your home? Look at nearby sales and compare your home honestly to those homes. Say the house down the street, with the same floor plan, sold for $X, and had a new roof, a fresh paint job and a granite kitchen. If your home has the original kitchen, an older roof and peeling paint; don’t assume yours will sell for the same. In general it’s better to price your home slightly lower than the competition. You get more people to see the house. Buyers will compete for the home, pushing up the price. If it’s overpriced, it’s unlikely that buyers will even come through the door.
The real definition of market value is what a willing buyer and a willing seller can agree on for a specific property.