This has always been a rather sensitive topic of discussion. The definition is the best response “is that is the price that a reasonable, able buyer will pay for a property”.
This does not mean that recent housing statistics, condition, age and other factors are not used to come up with not only an idea of pricing but you couple that with strategy or marketing to your audience to achieve the highest price in the shortest amount of time for a property.
Where this becomes difficult is when emotion enters and it becomes more about what a person wants for their property and less about the true, LIVE, marketing value of the same property. Can this fluctuate? Absolutely based on many factors that are too vast to list but just a few consider the economy, the state of our government, interest rates, buyer incentives, etc.
The best rule is to have a sliding scale of value low to high. If priced higher, then have a reasonable amount of time determined to make an adjustment to price. Homes at the right time, location, amenities and price will sell faster than others. Additionally, first impressions are important so do not let your listing become stale and old and miss out on those looking now vs later.
An important aspect is to consider all offers. The hardest part of the process is to even generate an offer. There will be some at or greater than your preferred price and quite a few that will be below and even some that may seem insulting. There is a lot of class that can go into rejecting an offer but still leaving the door open to revisit it in the future. Outside influencers may make that offer more appealing if you need to relocate or have another life change that requires expediency.
A real estate professional is here to help you through the process by providing you with valuation recommendations supported by market activity that will help you to make your final decision.