It's a really cute house from the outside but as a buyer I'd be instantly put off by the asking price vs the cost of modernising - financial and time cost.
It's really not comparable to other properties in the area when there are 4 beds with more outdoor space selling at around the same price or less. People just won't pay more to get less and people are having to become less picky about 'good' areas nowadays to be able to afford a good sized family home.
Looking at it from a buyers perspective, it is dated and the rooms are confused - sofas in bedroom and dining room.
From the pictures it doesn't look like a lived in and well loved, comfy, cosy family home.
The dining room isn't used to it's full potential with sofas taking up most of the space and a small table shoved in at the end.
Kitchen would need to be replaced and possibly opened out into the dining area as it's narrow.
Bathroom suite really isn't pleasant and would probably be the first thing that I would think of replacing.
The wooden wardrobe doors in the bedroom would be less conspicuous with a lick of paint to freshen and lighten the room.
The Welsh dresser in the hallway looks like it cuts across the stairs which gives the impression that it's a bit cramped and I'd consider moving some of the other chests of drawers that are dotted about in other rooms.
Carpets and decor wouldn't bother me that much as they're more easily and affordably replaced.
The big spend areas would be kitchen and bathroom and doing them on a tight budget would still mean a good 5 grand being spent. That's without any extra work such as re-wiring etc that may be required.
Ultimately in a market which isn't moving well, you as a vendor need to look objectively at what improvements can be and need to be done and the costs of those improvements and price the house accordingly. In today's market you can't expect buyers to pay top range asking price and then pay on top for improvements.
You either go for a quick sale by dropping the asking by a good 50k or you need to do some work yourselves to bring it up to a more modern standard, even if it is just a big standard cheap kitchen and bathroom, fresh tiles and a lick of paint everywhere. Either way, your pocket will take a bit of a hit, but if you really want to sell, you'll need to consider it.