The market dictates the value of a home...
While many of us feel emotionally attached to our homes and may have a dollar amount that we think it is worth, ultimately, the market dictates the value. That is why, in order to price a home effectively, sellers should ask their agent for a comparative market analysis - a collection of data representing the price of comparable homes currently on the market as well as those that have recently sold.

Price it right the first time, or you may end up with even less than it's worth...
Buyers view an average of 10-12 homes before making a decision to buy, so they learn quickly if a home is overpriced. Homes that are grossly overpriced will often sit on the market for a long time, requiring multiple price reductions. In the end the house will probably take longer to sell and may sell for less than it could have if it was priced right from the beginning.

Consider your level of urgency...
Sellers who are in no hurry to sell may be able to price a home at the higher end of the acceptable range. However, if you are in a hurry to sell, due to a job transfer or other life circumstance, pricing at the lower end of the acceptable range will probably help your home sell faster.