Strategy for selling a house - what is the best way to proceed?

But if I make the comparison – what is the intrinsic value of a Super Nintendo?

I think you are drawing the wrong comparison here. Living space is primarily a consumer good that is consumed by the fact that no one else can live in the apartment at the same time. For consumer goods, the intrinsic value is initially the focus. If I can get something equivalent for a significantly lower price, most people will do that. Super Nintendo, Pokémon cards, etc. sealed in original packaging are ultimately status symbols; different rules apply there, and the more absurd, the more expensive it is. Of course, the distinction is not clear-cut, and consumer goods are often mixed with status symbols. Manufacturers also put a lot of effort into convincing people that a T-shirt with brand advertising is worth €30 instead of €3 (you might still remember the discussion ;) ). The same obviously applies to the topic of houses; there is a lot of status thinking involved there as well.

Value is always somehow what someone pays for something.

You are confusing value and price. The "correct" price on a market is always the one at which all goods are just sold. But value is completely independent of that. The best way to observe the difference is at the stock market. Every company has a value and even if it changes, usually the value hardly changes within a day or a week. However, the price fluctuates many times per second.

If I can get something equivalent for a significantly lower price, most people will do that.

But usually I can't with houses. The demand currently exceeds the supply. I don't think it should be overdone. We have now decided for ourselves to be honest with the interested parties. We say what the current status is. But we do not encourage bidding. If several commitments come in and someone voluntarily offers more, we will inform the other commitments—if they want—that way they at least have a chance to keep up. Just saying "Outbid, sorry, ha-ha" also feels wrong. In case of a tie, our assessment of creditworthiness decides first, and in the end, I assume, sympathy as well. Or a combination of both, called "gut feeling."

I don't think it should be overdone. We have now decided for ourselves to be honest with the interested parties.

I think that sounds like a good plan. Regarding overdoing it, I can only say that as long as there are enough serious interested parties bidding in the higher price segment, you haven't overdone it yet. You are simply selling at a time that is very favorable for you. And in the end, everyone looks out for themselves. Buyers do the same. They don't bid more for your sake, but purely out of selfishness. They want to have the house. So if the liquid buyer should overdo it, that's his business and your luck. You have already mentally ruled out the sale in two or three years. When you look at the account balance, no feelings remain that are connected with the purchase. And if you, as you say in conclusion, approach the whole thing with the right amount of gut feeling and, if in doubt, maybe don't even sell to the highest bidder, then that's also perfectly fine. Gut feeling is generally completely underrated anyway.

Gut feeling is completely undervalued anyway.

Go to a structural sales representative for a sales conversation, if you rely on your gut feeling there, you'll be taken for a ride like a Christmas goose.

Go to a structural distributor for a sales talk; if you rely on gut feeling there, you'll be taken advantage of like a Christmas goose

Gut feeling only works in combination with natural common sense. And if you have enough sense, you won’t even get to experience such a sales talk.

Sorry for the off-topic.

You are selling at a time that is very favorable for you

but from their perspective, they are buying at an unfavorable time. Nevertheless, the family nearby profits.