In the world of residential property this is the million dollar question.
The answer most people will give you is 'as high a price as possible', assuming that you are the seller.
Firstly, how much is 'as much as possible'? The general rule is that a property is only worth as much as someone is prepared to pay for it. It is therefore normally considered advantageous to expose the property to the open market thus engendering as much interest as possible, increasing the possibility of finding someone who will pay a premium price.
Within this though, some sellers may hold out for a higher price whilst others appear to sell at a low level. Why is this?
A number of factors can contribute to the reason why a seller may or may not be flexible on the price of the sale; the level of need to sell, level of mortgage, negative or positive equity, if they're the owner occupier, a buy to let landlord, a builder selling a new build property or even a business that has bought a part exchange property.
Their personal circumstances may also influence their reasons for selling. For example, the sale may be a result of a divorce or separation or perhaps it may be an executory sale brought about by a death in the family. Or on a happier note they may be needing to sell their property quickly to accommodate an expanding family! Alternatively a seller may be a lender with no emotional involvement at all, just trying to get the property off their books and write off a debt.
The needs, aspirations and decision making process of each seller will be different. The price level that they will accept may also be thousands and sometimes hundreds of thousands of pounds apart.
All of the above can lead to opportunities for buyers to get themselves 'the best deal' on the property that they're buying but equally the circumstances of the purchaser can lead to great deals for the seller.
Would be purchasers of your property may be looking to buy a property for investment or may have come into an inheritance which has broadened their buying range. They may even fall in love with a property or have a specific need for a particular, style size or location of property, and offer more than the asking price so that they don't miss out. On the other hand, they may be looking for a buy to let property so would be quite relaxed and happy to offer a low figure, accepting that they may not get it. Sometimes its purely an urgency to move due to family or work situations that drive a need to purchase quickly and as such a premium might be paid.