How do we determine a fair market price for the house?

I will research MLS data, tax records and other sources for recently sold houses, ones that didn't sell, and houses currently for sale. This process is called a Comparative Market Analysis (CMA). Together you and I will review the CMA and discuss a strategy for getting the house sold.

Why don't we put the house on the market at a high price and bring the price down over time until it sells?

That is a proven strategy to sell the house for less money and in more time than a properly priced one. There is an initial flurry of inquiries about a house during the first few weeks. That activity will taper off over time as your home becomes "old news" in the area.

If your house is priced too high, it is competing with homes that are larger, or have features that yours lacks. Your competition will love you. Why not? You are helping them sell their own house as buyers compare their choices. Meanwhile, buyers who would have otherwise fallen in love with your house have rejected it as "overpriced."

If your home were to bring an offer at the higher price, the buyer's lender will still require an appraisal on the home. The contract will fall through when they discover the price of the house is not supported by the market. Over time people will assume something is wrong with the house, or they will assume you are growing desperate and make lower offers.