It is conventional wisdom these days that selling and buying real estate is all about price, but that is an over simplification -- the property in question must offer price with value, and though often confused with each other, price and value are not the same thing -- they have a relationship.
In a real estate transaction, price may be defined as what the buyer agrees to give up (in financial consideration) to obtain certain benefits (real estate, and the use thereof.) That price has nothing to do with seller's cost, seller's desired return on investment, seller's cash flow needs or emotional attachment to the property, or anything else that has anything to do with the seller.
Value, on the other hand, may be expressed as a relationship, such as: Value = (perceived) benefits received / price.
Buyers are in the market place looking for a "good deal." It is each buyer's perception of the value of a property that helps him or her determine whether the offering is a "good deal" or not. This perception of value must reach a certain level or no offers will be forthcoming from buyers, regardless of price. From a seller's standpoint, it is important to recognize from the formula for value that there are two ways to increase that perceived level of value -- a lower price, and/or an increase in perceived benefits received. And that is where marketing comes in.
Marketing is a whole 'nother topic, and I will save that for a later date. My point distilled down is: Sellers, before setting the list price of your property, you must first first critically examine the value of your property in today's (not last month's, not last season's, not last year's) market.