This home is overpriced, but not to the extent you think it is. And since it is still for sale, the market seems to agree that it is overpriced.

Homes that are move-in ready command a premium. You cannot live in a home while you do a gut reno. So you have to pay to live somewhere else, and additionally you have to pay all the carrying costs associated with the home, such as taxes, insurance, utilities. Plus, don't forget that real estate agents take a 5-6% commission. You seem to have neglected these costs.