Zillow Group Inc. Unveils Common Missteps Homeowners Make When Selling

The survey, which polled 1,387 U.S. adults aged 18 and older who own homes, highlights that selling a property is one of life’s most substantial financial decisions. Despite this reality, many homeowners are misinformed about how to optimize their home sale. Zillow’s research identifies critical areas where sellers often go wrong.

One of the most prevalent mistakes is the belief that major renovations, such as building an addition, will yield the highest return on investment. According to the survey, nearly 23% of homeowners hold this misconception. In contrast, the data suggests that simpler, less expensive upgrades—like fresh paint and improved landscaping—can provide a better return on investment. Christina Pappas, president of The Keyes Company and Illustrated Properties, emphasizes the importance of strategic updates and a polished presentation to attract potential buyers.

In today’s digital age, online presence is critical. Zillow’s findings reveal that 40% of homeowners still prioritize curb appeal as the most important aspect of a home’s first impression. However, the new term “screen appeal” has emerged, highlighting that many buyers make decisions based on online listings. Homes featured with high-resolution images, 3D tours, and interactive floor plans—like those listed with Zillow Showcase—can command prices that are 2% higher than similar listings without these features.

Finding the right real estate agent is crucial, yet about 25% of homeowners believe they can bypass essential steps such as reading online reviews, researching sales history, and interviewing candidates. In a rapidly changing market, these steps are vital for sellers to ensure they are getting the best possible guidance and competitive edge.

The survey also found that nearly 45% of sellers think that an open floor plan is the most appealing feature to buyers. Contrary to this belief, homes with natural materials—like white oak flooring and walnut cabinets—tend to sell for as much as 3.5% more. Only 9% of homeowners recognize this trend, indicating a significant gap in understanding what buyers truly value.

A concerning finding from the survey revealed that over half of homeowners (56%) believe they can hide known issues, such as structural problems or pest infestations, to expedite the sale process. This misunderstanding could lead to legal ramifications, as sellers are required to disclose known issues to potential buyers.

Despite the misconceptions, many homeowners do understand the importance of visibility in the listing process. Approximately 37% know to ask their agents where they will list the home, and 70% recognize the value of public listings on all major real estate portals. Zillow’s research indicates that sellers who do not utilize the Multiple Listing Service (MLS) often sell for nearly $5,000 less than their fully listed counterparts.

As the real estate landscape continues to evolve, it’s imperative for homeowners to stay informed and proactive. By addressing common misconceptions and collaborating with knowledgeable agents, sellers can avoid costly mistakes and maximize the value of their property. Zillow encourages homeowners to leverage available resources to ensure they are making the most of their real estate transactions, ultimately protecting their largest asset: their home.

Zillow Group Inc. remains committed to transforming the real estate experience, providing tools and insights that empower homeowners in their buying and selling journeys.