Let's say your three neighbors just sold their homes for $400K...

...but when comparing your home to the homes sold by your neighbors...

Your house needs $10K of painting - or your house needs $16K of new flooring - or your house needs a $22K new roof.

When pricing your home, you shouldn't just subtract the price of that improvement from your neighbor's list price to arrive at...

A list price of $390K - or $384K - or $378K.

You likely need to subtract 1.5 times the cost of the improvement when pricing your home. 

Would be home buyers will likely round up somewhat in their mind when estimating the cost of making the improvement -- AND -- it will be much more of a pain for them to make the improvement after closing as compared to you have already completed it before selling your home.

As such, it will likely be more realistic to consider a list price of $385K - or $376K - or $367K.