Five missteps homeowners make when selling that could cost them thousands

Rhea-AI Summary

Zillow (NYSE:Z) has released new research highlighting common mistakes homeowners make when selling their properties. According to a survey conducted by The Harris Poll, sellers often invest in wrong improvements, with 23% believing additions offer the best ROI when simpler updates like fresh paint prove more effective.

The study identifies five key misconceptions: investing in wrong projects, underestimating online presence (40% still prioritize curb appeal), inadequate agent research, misidentifying valuable features, and misunderstanding disclosure requirements. Notably, homes with natural materials can sell for up to 3.5% more, while Zillow Showcase listings command a 2% premium.

The research also reveals what sellers get right: 70% understand the importance of listing on major real estate portals, and most recognize that private listings typically result in $5,000 lower sale prices.

Positive

• Homes with natural materials can sell for up to 3.5% more than expected
• Zillow Showcase listings with enhanced digital features sell for 2% more
• 70% of homeowners understand the importance of listing on major real estate portals
• Research provides valuable insights to help sellers maximize their home's value

Negative

• 56% of homeowners incorrectly believe they should hide property issues
• 23% of sellers waste money on expensive additions instead of focusing on simpler, more effective updates
• 40% of homeowners misunderstand the importance of digital presence
• Private listings typically result in $5,000 lower sale prices

New Zillow survey reveals common seller mistakes — and two critical things homeowners get right

SEATTLE, June 26, 2025 /PRNewswire/ -- New Zillow® research 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 biggest financial decisions, but a Zillow survey conducted by The Harris Poll finds that many Americans misunderstand important parts of the process. The new data highlights five things homeowners often get wrong when selling — and what they tend to get right.

1. Investing in the wrong projects
Today's sellers face more competition and need to put in more work to get their home ready for sale. However, investing in the wrong improvements can take a big bite out of the bottom line.

Nearly one-quarter of homeowners (23%) believe building an addition offers the best return on investment when preparing a home for sale. In reality, simple updates like fresh paint and landscaping deliver a much better — and more affordable — return on investment when it comes to resale.

"Many sellers assume that big, expensive renovations will guarantee a higher sale price," said Christina Pappas, president of The Keyes Company and Illustrated Properties in Miami. "In reality, buyers respond more to a thoughtful presentation: smart pricing, polished staging, a high-impact digital presence, and strategic updates like a fresh coat of paint. A strong first impression gets buyers in the door. That's why it's essential to work with an agent who understands what buyers are looking for and how to make a listing stand out online."

2. Ignoring screen appeal
Screen appeal is the new curb appeal. Many buyers make up their minds about a home after viewing it online, yet 40% of homeowners believe great curb appeal makes the best first impression.

Zillow data shows that investing in an immersive online media package pays off. Buyers pay 2% more for homes listed with Zillow Showcase, which features larger high-resolution images, 3D Home tours and interactive floor plans, compared to similar non-Showcase listings. 

3. Skipping key steps when hiring an agent
In today's rapidly changing market, sellers need a local expert to correctly price and market a home for sale. Still, one-quarter of homeowners believe they can skip reading online reviews (25%), researching sales history (25%) and interviewing their top candidates (25%) when hiring a real estate agent. These steps are essential to finding the right agent and gaining a competitive edge.

4. Highlighting the wrong features
Nearly half of homeowners (45%) think an open floor plan is the feature most likely to boost a home's sale price if mentioned in a listing description. However, Zillow research shows that these homes actually sell for 0.2% less than expected. By contrast, homes with natural materials like white oak flooring, walnut cabinets and soapstone countertops can sell for as much as 3.5% more. Only 9% of homeowners recognize this advantage.

5. Misunderstanding seller disclosures
More than half of homeowners (56%) think sellers should hide issues like structural problems (19%), pest infestations (15%), water damage (15%) or asbestos (14%) to sell a home faster. That could put a homeowner on the wrong side of the law. Sellers must disclose known issues to prospective buyers, and a trusted real estate agent can help ensure all legal requirements are met.

What homeowners get right
Sellers today need to 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 for sellers to ask an agent is where they plan to list the home for sale. A large majority (70%) understand that listing publicly on all major real estate portals, such as Zillow, Redfin and Realtor.com, gives a seller the best chance of earning the most money.

Only 8% of homeowners say listing a home privately — only for clients of their real estate agent's brokerage — will give a seller the best chance of selling for the most money. The data backs that up: Zillow research finds that the typical home seller who did not list on the Multiple Listing Service (MLS) sold their home for nearly $5,000 less.

In today's dynamic real estate market, homeowners need to stay informed and advocate for their listing. By understanding these common misconceptions and working with a trusted agent, sellers can avoid costly mistakes and make the most of their home sale. Homeowners should explore a variety of resources to ensure they're putting their best foot forward and getting the most out of their biggest asset: their home.

Survey methodology
This online survey was conducted June 5-9, 2025, within the United States by The Harris Poll on behalf of Zillow.  The survey polled 1,387 U.S. adults ages 18 and older who own a home. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@zillow.com.

About Zillow Group
Zillow Group Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated real estate professionals, and easier buying, selling, financing and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Zillow Rentals®, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.

All marks herein are owned by MFTB Holdco Inc., a Zillow affiliate. Zillow Home Loans LLC is an Equal Housing Lender, NMLS #10287. © 2025 MFTB Holdco Inc., a Zillow affiliate.

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SOURCE Zillow Group, Inc.

FAQ

What are the 5 main mistakes homeowners make when selling according to Zillow's 2025 survey?

The main mistakes are: 1) Investing in wrong projects like additions, 2) Ignoring digital presence, 3) Skipping steps when hiring agents, 4) Highlighting wrong features, and 5) Misunderstanding seller disclosures.

How much more do Zillow Showcase listings sell for in 2025?

Homes listed with Zillow Showcase, featuring larger images, 3D tours, and interactive floor plans, sell for 2% more compared to similar non-Showcase listings.

What features add the most value to home listings in 2025 according to Zillow?

Natural materials like white oak flooring, walnut cabinets, and soapstone countertops can increase sale prices by up to 3.5%, while open floor plans actually result in a 0.2% decrease in sale price.

How many homeowners believe they should hide property issues when selling?

56% of homeowners incorrectly believe they should hide issues like structural problems (19%), pest infestations (15%), water damage (15%), or asbestos (14%) to sell faster.

What is the financial impact of not listing a home on the MLS according to Zillow?

Sellers who don't list their homes on the Multiple Listing Service (MLS) typically sell their homes for nearly $5,000 less than those who do.