Are you talking about the tax value or an appraisal done by a bank appraiser. If you are thinking about the tax appraisal, those are often way off. They can be way above or way below the actual market value. There are lots of people who don't understand that though....so sometimes they think they are getting a great deal just because they are buying below tax value. Buying at, below or above tax value is in no way an indicator of a great, good, or bad deal on either the buyer or seller side.
Surprisingly these days lots of buyers are very very in tune with values in specific neighborhoods. They know a good or bad deal when they see it. Sometimes it is also a function of the competition and what they've already seen at what prices. I personally don't think listing agressively hurts you in any way. In fact we often see that can generate great interest and multiple offers on a home. We just went through an experience about a month ago where a seller listed a great house about 5% under market. Five offers in the first 3 days on the market with 2 over the list price. That was at approximately $400,000. We also have another seller who has listed an average house about 5% over the market. Lots of people look, but the serious ones call to ask why the price is so high and would they take X....which is about 5% below market...then they never make the offer.
By the way if the home is currently rented, we find it best to sell once they are out. It is typically very very tough to sell with the tenant in the house for a variety of reasons. One is they typically don't want to move and find it an inconvenince to allow people inside. They rarely leave for showings which makes the buyers uncomfortable. They are rarely in show ready condition like a normal seller would have the home. They are also way to willing to share all the faults of the neighborhood, the owner, and the condition of the house with potential buyers, which often drives them away. So one idea you will want to consider is to get the tenant lease wrapped up, get them moved out, get the property back in show ready condition and then put it on the market.
Keller Williams Realty