I see a lot of people in my area selling there home privately.  I was
just wondering how these individuals decide what their home is worth
and how they analyze what features make their home worth more than
say, their neighbours.

Also can anyone suggest a few good canada home for sale or private sale site
that I can use to get free exposure for my site in Edmonton, Alberta.

Some individuals monitor the housing values in their neighbourhood. 
Anytime a nearby house sells, try and learn what the sales price is.
This gives you a range but this range isn't enough to use when pricing
your home.  You can't just use all the homes for sale you need
"comparables".

Some comparables include:

-Same area or town and similar age
-Roughly same square footage
-Same number of bedrooms and bathrooms
-Similar style and design
-Roughly same amenities that come with the home

If you have tried this and still can't come up with a sold asking
price.  You may want to consider getting an appraiser to appraise your
home.  It may cost you around $300-400 CA but in it gives you some
solid backing when bargaining with an interested buyer.

I used google and a few other search directories and most of the
canada fsbo sites that allow you to list your home online charge
between $69.00-$499.00.
However, one site did catch my attention and it almost seems better
then the above pay sites which is unusual (I can't see it staying free
for very long).

It's says it's a for sale by owner Canadian directory and I looked and
it seems to have quite a few Edmonton listings (like you were looking
for).  The website can be found at http://www.housefox.ca/.

I hope this helps...

Mr. GooogleCanada

Wow!!! I did some looking but didn't come across this one, thanks
Gooogle.  They should consider adding their site to DMOZ so a few more
people know about it.  However, I don't know if DMOZ lists free sites.
 They should though cause this seems like a really solid private sales
service.

<a href=http://www.housefox.ca/pages/homes/Edmonton.html>HouseFox Edmonton</a>

Here is what my listing looks like! I guess we will see how it goes!

Thanks for the info on the appraiser as well.