Like Andy, I'd also analyze the price trending, and I'd incorporate the results into my math model. Another important factor to consider is the exit strategy/strategies that I plan to use for the target property, and I incorporate that into my math model too.
Depending upon how creative and flexible you are, the more likely you'll be able to do a deal closer to the numbers you'd like.
You can also hire a professional appraiser, let them know what type of valuatiojn you are looking for and ask them for detailed explanation of how they arose at that value.
There are several types of ways to arrive at value, all have pros and cons, so why not see all of tehm to assist you in getting a realistic number, the bottom line is though, a property is only worth what a buyer is willing to pay for it. good luck with your sale
To be honest with you, all of the answers you have received so far are good ones, but I think the most important factor is that you hire an experienced agent who has the strongest marketing plan, and listen to what that agent suggests. You may be surprised by either a higher suggestion than you thought, or a lower one.
Abouth 5 years ago, I sold a house in a little beach community called Chesapeake Beach. Unbeknownst to me, my seller had contacted 3 local agents, and myself (my office was 30 minutes away) The local agents told him $325K max, (which was based on the comparables) but I fealt that his home was unique and could easily get $425K. I sold that house in 5 days for $425K.
When I price a home, I think of it from a buyer's perspective, and what other homes on the market are most like my listing. Sometimes, I have good news for my clients (a price higher than they expected) and some times I have bad news ( a price lower than they expected)
What I usually tell them if they insist on pricing it higher than I think it will sell for is this, "There is nothing wrong with overpricing a house, as long as once you realize it is overpriced, you do something about it"
If you don't have an offer in 30 days, you are probably overpriced.
An appraiser uses multiple approaches when trying to determine value. When the comparable approach isn't the most appropriate, a cost approach is often used. Basically you break down the components of the land and property and use comparable land values plus and estimated cost of construction less any depreciation. Due to the declining market, full replacement value may not be accurate so this may be the top of the range.