An error commonly made by sellers when pricing their homes is that they fail to distinguish value from saleability.  The value of a home references the factors related to the property to cause it to be worth more or less than other properties.  Saleability references the factors related to the property that cause it to be more or less salable than the competition.

Some factors that create value are : Location, Location, Location.  If you're in a more desirable location, you'll get more money than a similar house in a less desirable location.  Examples of more desirable locations would be lake front, wooded or park view lots.  Less desirable would be homes that back up to the sewage treatment plant, a busy highway or the ugliest house on the block.

 

For more info:

http://activerain.com/blogsview/2610135/separating-value-from-saleability