The higher you price the home from fair market value the more potential buyers you've eliminated.
1. What you paid for it.
2. What you need.
3. What you want.
4. What your neighbor says.
5. How you think a buyer might try to negotiate with you.
6. What it cost to rebuild.
7. That the cost of your improvements will be bring dollar for dollar in value to your home.
8. What another agent says (known tool of the trade to take over priced listings to generate other business).
9. What a previous refinance appraisal and/or personally obtained one says.
Consider this last thought, would you rather be turning down offers or not getting any? Remember....Buyers and Sellers determine value. The value of your property is determined by what a Buyer is willing and able to pay and a Seller is willing to accept. Buyer's make their pricing decision based on comparing your property to other similar sold properties in the area.