I could talk endlessly about price, but instead a few thoughts.
You Can't Sell a $100 bill for $110
Buyers coming to view your home have usually seen the competition and recognize immediately if the price is fair. If they sense you're way over-priced, they assume you're trying to rip them off.
A seller's temptation to try a number above market value is real, we're all trying to do the best we can, but it usually backfires.
Understand that buyers aren't easily fooled. If they feel insulted, they move on, and you usually don't get a second chance. A price drop later rarely brings them back.
If The Price Seems High, Buyers Expect More
When buyers find a listing priced on the high side, they still come see it, but they're packing a different attitude.
If your home is 30k more than surrounding homes, there needs to be something special about it. When the buyer arrives to discover it looks the same as the rest, you've disappointed them, and they leave with a negative feeling. They think you tried to trick them.
Buyers need to feel good about the home. Turn them off, and they won't come back.
When You Set a Fair Price Buyers Notice
Now you've created the spark.
Anyone can take pictures, list their home on a FSBO website, and show somebody around. The challenge lies in getting the buyers to make the offer. They're going it alone (no Realtor to advise or assure) and fear the big mistake.
Fear of the big mistake, or the desire to not look stupid, can be a more powerful motivator than the reward of a great decision.
If your price is high, you handed them an easy reason to pass. When your price is tempting, they are tempted.
Now you've replaced the fear of making the big mistake with the fear of missing out. The fear of missing out to another buyer creates the urgency required to bring an offer.
Pricing is Both an Art and a Science
Some additional thoughts now.
There is no blue book value for homes (someone asked me that once but he worked at a car dealership). Every home is unique. They vary widely in condition and some have a broader appeal than others.
If you are using homes currently listed on MLS remember these are asking prices or what the homeowner hopes to get. What they get is a different story. Most listed homes sell in the range of 10-15k less than the list price, depending on how well priced it was to begin with mind you, so factor this in when determining your list price.
You should go to open houses in the area. It gives you a first-hand look at what buyers are seeing when shopping.
Be competitive. You are competing with other homes for sale in your area and price range.
Finally, if you have to "gut" the price to make a buyer notice and get an offer on the table, it might make more sense to ask 10K more for the house and have it listed on MLS. You'll net out close to the same and won't have the uncertainty of a DIY sale.
Location, location, location! You may have heard this.
I'd like to offer a different one: location, condition, and price. These are the three most important factors when trying to sell your home.
The first one, location, can't be changed. You're stuck with it.
The second one, condition, can (and should) be improved by painting, cleaning and making small repairs, Keep in mind that you should never do a major renovation of any kind, you won't get your money back. So, for that reason, condition can be changed, but only to a certain extent.
That leaves us with the third one on the list, price. Price is the only factor you can reasonably control.
All homes sell for the right price, regardless of location or condition.