As a rule of thumb, we are advising homeowners not to sell if they don't have to. Here's the easy exception. If you plan on moving up and buying a new home in this same market - go for it.
Once you sell your house, you'll be participating in the same wonderful buyer's market with low interest rates and plenty of choices. After you sell, you'll achieve the same "savings" on your next home as you "lost" on your current home, plus you'll be locking in a lower property tax base then if you wait for the market to rebound and prices to start rising again.
The winning formula if you are selling: Hire an agent will meet your personal expectations, repaint in neutral colors, replace the carpet, make minor repairs, remove the clutter, stage it perfect and price it slightly below market.
Have a great day!
Nancy Moeller, CPA, Realtor