I used a quote a while back in one of my previous posts to explain much of what is going on in our current Dallas real estate market. But here's an equation I like that sums it up nicely.
Seller greed (uneducated sellers) leads to overpriced listings;
Overpriced listings don't sell because buyers don't perceive value;
When buyers don't buy, inventory increases;
Increased inventory over time leads to a decrease in sales prices.
You can take this to the bank. Buyers aren't stupid and don't really care about your "upgrades" if the price doesn't make sense to them. Like it or not, buyers are not willing to pay your asking price just because you "need to make $X amount of dollars" when selling your house. That is what we mean when we say "the market is telling you your house is not worth what you're asking". Buyers determine value and they are always out there looking. Serious buyers are educated about asking prices in the areas they want to buy. They will not waste their time making an offer on a home they feel is over priced.
And don't kid yourself by saying, "Buyers just aren't looking right now" because they very much are. They just aren't seeing value in the homes that are currently on the market. Realtors that understand this and the above equation and how it applies to their clients aren't whining about a terrible real estate market because they're too busy attending closings.