New research from Zillow, located at better known as Redfin and Realtor.com, according to Zillow Showcase data, reveals the most common misconceptions homeowners have about selling a home that could cost them thousands of dollars.
Selling a home is one of life’s most important financial decisions, but a Zillow survey conducted by The Harris Poll reveals that many Americans misunderstand important aspects of the process. Christina Pappas, president of The Keyes Company and Illustrated Properties in Miami, highlights the fact that many sellers assume that large, expensive renovations guarantee a higher sales price. The new data highlights five common mistakes homeowners make when selling, and the ones they usually get right.
1. Investing in the Wrong Projects
Today’s sellers face more competition and need to invest more to prepare their home for sale. However, investing in the wrong improvements can significantly affect their returns.
Nearly a quarter of homeowners (23%) believe that building an addition offers the best return on investment when preparing a home for sale. In reality, simple improvements such as painting and upgrading landscaping offer a much better and more affordable return on investment for resale.
“Many sellers assume that large, expensive renovations will guarantee a higher selling price,” said Christina Pappas , president of The Keyes Company and Illustrated Properties in Miami . “In reality, buyers respond best to a thoughtful presentation: smart pricing, impeccable staging, an impactful digital presence and strategic updates like a fresh coat of paint. A good first impression attracts buyers. That’s why it’s essential to work with an agent who understands what buyers are looking for and how to make a property stand out online.”
2. Ignoring the appeal of the appearance
Curb appeal is the new curb appeal. Many buyers decide on a home after viewing it online; however, 40% of homeowners believe that good exterior curb appeal makes the best first impression.
Zillow data shows that investing in an immersive online media package is cost-effective. Buyers pay 2% more for homes posted on Zillow Showcase, which includes larger high-resolution images, 3D tours and interactive floor plans, compared to similar listings that are not posted on Showcase.
3. Skipping key steps when hiring an agent
In today’s ever-changing market, sellers need a local expert to properly price and market a home. Still, a quarter of homeowners believe they can avoid reading online reviews (25%), researching sales history (25%) and interviewing their best candidates (25%) when hiring a real estate agent. These steps are essential to finding the right agent and gaining a competitive advantage.
4. Highlighting the wrong features
Nearly half of homeowners (45%) believe that an open floor plan is the feature most likely to increase the selling price of a home if it is mentioned in the listing description. However, a Zillow study shows that these homes sell for 0.2% less than expected. In contrast, homes with natural materials such as white oak floors, walnut cabinets and soapstone countertops can sell for up to 3.5% more. Only 9% of homeowners recognize this advantage.
5. Misunderstandings with Seller Disclosures
More than half of homeowners (56%) believe that sellers should hide problems such as structural problems (19%), pests (15%), water damage (15%) or asbestos (14%) in order to sell a home faster. This could put the homeowner in an unfair legal position. Sellers should disclose known problems to prospective buyers, and a reputable real estate agent can help them ensure that all legal requirements are met.
What homeowners do well
Today, sellers must be proactive to make sure their listing is seen by as many potential buyers as possible. Nearly 2 in 5 homeowners (37%) know that the most important question sellers should ask an agent is where they plan to list the home. A large majority (70%) understand that posting their listing on major real estate portals, such as Zillow, Redfin and Realtor.com, offers the seller the best opportunity for the highest profit.
Only 8% of homeowners say that listing their home privately (for real estate agency clients only) offers the seller the best opportunity to sell it for the highest price. The data backs this up: a Zillow study reveals that the typical seller who did not list their property on the Multiple Listing Service (MLS) sold it for nearly $5,000 less.
