Renovations gone overboard

So, I wasn't able to catch the first day of Buy Me's Budget Breaker's Week due to a propensity to nap. I did catch the second day though titled "Revamping for a Sale" about a woman who originally bought a Georgian style house but poured in a whopping $380,000 worth of renovations to update it to compete with new construction that was going up across the street. She enlisted her sister as an agent. I think her sister hates her because she kept insisting on spending money to update the building, building dormers to make the house look bigger, knocking down the front living space wall for a more open living space, which turned out to be a big mistake. Even after $30,000 more in renovations, the house still didn't sell even after listing at $875,000 - a $75,000 loss. This really opened my eyes up to the fact that a house is a home, yes, but it also is an investement. Going overboard in renovations can really hurt you in the resale market.