Whatever your home does sell for, in this market you're going to get a better savings on your move-up than you are "losing" on your sale... so I would be looking to price aggressively so that you can take advantage of the remaining sluggishness in this market on your buy side. Historically, sales are strongest in the March-July time frame, so you'd maybe see a slight improvement in the price of your current home but have less leverage on the purchase of your next home.
Also, rates are hovering near 6% today but were as high as 6.75% just last Summer. If they do trend higher, which I think they will, you'll see your buying power shrink slightly.
The sooner you list and the more aggressive you are with pricing, the more likely it is that you will be able to take best advantage of this market on the buy side.
If I can be of any help or answer any further questions you may have, don't hesitate to get a hold me. My contact info is all on my website and the link to it is below.
Because of all the forclosers there is a glut of "starter homes" on the market. However there is a shortage of homes in good condition for buyers not looking for a "fixer upper". I would hire a good Realtor and put the home on the market. You're correct, this a great time to move up.