These Homeowner Missteps Could Cost You
As one of the most significant investments someone will ever make, a home doesn’t just provide a roof over your head, but a way to build long-term wealth. When it comes time to sell your home, however, a recent survey reveals that many people make costly mistakes. According to the results of a Zillow survey conducted by The Harris Poll, here are five things homeowners often get wrong when selling—along with a few things they do correctly.
Investing in the wrong projects. While you certainly want to make investments in your home to help it sell for the best possible price, investing in the wrong projects can backfire and ultimately cost you money on the bottom line. For example, according to the survey results, 23% of homeowners believe that building an addition offers the best return on investment; however, in reality, simple, less costly updates like fresh paint and landscaping deliver a significantly better return on investment when it comes to resale. A clean, polished presentation can have a greater impact than the addition of an expensive room to the house.
Ignoring screen appeal. When selling a home, you’ve likely heard about the importance of curb appeal—how your home looks from the street—but these days, how your home looks online can be even more important. In other words, screen appeal is often the new curb appeal.
Zillow data indicates that investing in an immersive online media package can yield significant returns. Discuss with your real estate agent the possibility of a digital presentation that features larger, high-resolution photos, 3D home tours, and interactive floor plans, for example.Not thoroughly vetting potential agents. The importance of working with a professionally skilled real estate agent cannot be emphasized enough—especially in today’s rapidly changing market. While it’s essential to work with an agent who can help you properly price and market your home, according to the survey results, 25% of homeowners believe they can skip reading online reviews, researching sales history, and interviewing their top candidates when hiring a real estate agent. However, these steps are essential to finding the right agent and gaining a competitive edge.
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 the expected price. By contrast, homes featuring natural materials, such as white oak flooring, walnut cabinets, and soapstone countertops, can sell for as much as 3.5% more. Yet only 9% of homeowners recognize this advantage. Discuss with your real estate agent the features that are most likely to command a higher price in your market, and be sure to highlight those features in the listing.
Not providing seller disclosures. More than half of homeowners (56%) believe sellers should conceal issues such as structural problems (19%), pest infestations (15%), water damage (15%), or asbestos (14%) to sell a home faster. Doing so, however, can put you at legal risk as sellers must disclose known issues to prospective buyers. Working with a trusted real estate agent can help ensure all legal requirements are met.
