Pricing Homes Correctly

I went to visit a customer in Montclair, NJ, to whom I sold a home 8 years ago. The home had a lot of potential back then but money has been tight and her dreams were not realized and now she wants to sell. I gave her a price to really get some interest in the home. She felt the home was worth $75,000 more than I was telling her. She wanted buyers to see the potential that her home has and be willing to pay for it. I had the hard task of telling her that buyers are not looking to pay for potential right now--they are looking for a bargain. Sellers, unfortunately, are about one year behind in the prices they can actually get for their home. Even though Montclair is fairing quite well, only homes that are priced well are selling. If a seller's home is worth more than market value then buyers will pay it. Sellers must think like buyers right now. What would you be willing to pay for your home in today's market??