• Don't base the price on what you paid or what your neighbor got a few years ago.
• Do examine the prices of homes for sale in your neighborhood, as well as the prices of comparable homes that have sold in the past 3 - 6 months.
• Don't pick an agent simply because he or she suggested the highest price.
• Do pick an agent who offers a thoughtful explanation for the price he or she is suggesting.  Pick an agent who is a member of the National Association of Realtors, one who has several years of experience and one who has taken addional education classes and can provide designations, such as ASR or SRES, Accredited Sellers Representative or Seniors Real Estate Specialist. 
• Don't go overboard with remodeling.  Rarely can you recoup the cost.
• Do make minor improvements so that your home is in as good as, or better, shape than the competition.
• Don't set your price based on emotional or cherished memories.  Listen to the professional opinion of your agent for guidance.
• Do ask your agent to reassess the competitive landscape every few weeks to make sure that your asking price is in sync with the market.
• Don't be stubborn.  If weeks go by without any offers, the price most likely does not reflect the value of the home.  It's time to consider cutting the price. Your agent can assist you with a new price.
• Do be patient.  You might have to wait longer for buyers to pull their money together no that lenders have toughened their standards.

Source:  Seattle Times, April 20, 2008