Here’s something you should consider when debating the great price chop:  The market will probably decide it for you anyway.
“It’s almost impossible to underprice, because the market will bring it back up,” says Mike King, an agent with the Partners Trust Realty in Brentwood, CA.   Think of it like eBay.   You list an item for $1, but you know it’s worth somewhere in the $250 range. Eventually people start bidding, and some people might want that item so much they end up paying $275 for it.  It’s actually a better move to slightly underprice your home than it is to overprice it, because you’ll have more offers to work with—and you can work the competition into a frenzy.  
“It’s called leveraging power,” King says. “If I’m a [motivated] buyer and I know there’s only three offers, I’m going be less aggressive than if you had 10 offers.”