Over Improving causing overpricing

This is for all of our overpriced sellers:

"Our house is worth more because...."  this sentence is often followed by  statements such as:  "we put in a pool"  "we just repainted the house" or "we put down new sod".   Spending money improving your home can not automatically be calculated into your asking price.  This is a fatal selling mistake that current statistics here in the St. George, Utah real estate market will prove. 

So you've spent $35,000 on a beautiful new pool only 2 years ago?  Essentially you paid  $3000/month to enjoy your pool for those 24 months.  Usually in circumstances where the buyer absolutly desires a pool, will it fetch any additional value.  Buyers with small children may not accept a home with a pool, having a pool is actually narrowing your "pool" of perspective buyers.  Buyers who do not want, or do not care if the home has a pool most certainly will not pay additional to have yours.

Suppose you spent $5,000 putting down new sod.  You will not necessarily see any return on this money.  It's probable the competition homes selling in your neighborhood with a competitive asking price, already have landscape and sod.  What this WILL do, is KEEP your property among the competition.   

All of your hard work and upgrades do not get tallied up when determining an asking price.  Of course some improvements are taken into consideration, but buyers are PRICE driven in todays market.  The buyer wants "X" number of bedrooms and bathrooms and "X" amount of square footage or lot size.  From a buyers perspective, they can add upgrades equivalent to yours in the future.  Many believe they can do it cheaper themselves-then they too can list their home with an outrageous asking price (as you have done).  And so begins the vicious cycle of the deal seeking buyer transforming into the over priced seller adding to the inventory that is clogging our market.

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