Sellers and real estate agents are increasingly feeling frustrated by something that's been dubbed the "HGTV effect". In a nutshell, potential buyers who have watched way, way too much HGTV not only don't want to buy anything that's not pristine, upgraded, perfect, they don't even want to look at it. Even the Washington Post has written about this.
There is almost no market any more for fixxer uppers. The market left for those is investors looking to give you a lowball price that is likely to make the average seller gag.
If you haven't redone the kitchen complete with granite countertops, hardwood floors (or ceramic tile) and the newest and best appliances, forget it.
The dilemna for a seller is that if you pay to upgrade your house you will NOT get that money back. Yes, you'll get some of the investment back. But you won't come anywhere near getting it all back. On the other hand, at least you'll get people to look at your house!
My advice, start upgrading now even if you're not going to sell for awhile. At least you can get some enjoyment out of the upgrades!
Oh, and if you're a buyer and want a deal, look for the properties that need upgrading and be ready to do the work yourself!