Key Details:
- Zillow’s June 2025 survey highlights the five most common and costly mistakes sellers make, including overinvesting in renovations and skipping key steps when hiring an agent.
- Poor listing choices can cost sellers nearly $5,000, especially if they don’t use the MLS.
- Only 9% of homeowners recognize that natural materials can increase a home’s sale price by up to 3.5%.
A new Zillow survey just dropped, and it confirms what many agents already know: a lot of homeowners are making costly assumptions when it comes time to sell.
The June 2025 report, based on a Harris Poll survey of over 1,300 U.S. homeowners, highlights five common mistakes that could lead to missed profits, legal issues, or a longer time on market. While sellers are more informed than ever in some areas, this data shows there’s still a major education gap.
If you’re a listing agent, this is the kind of research that helps you lead with authority. Use it to shift seller expectations, support your recommendations, and save your clients from making decisions that could cost them thousands.
Here are the five biggest mistakes Zillow identified.
1. Overinvesting in the Wrong Projects
When asked which home improvement offers the best return on investment, nearly one-quarter of homeowners (23%) said building an addition. But in reality, those large-scale renovations don’t pay off the way sellers think they will.
According to Zillow, simple improvements like fresh paint and landscaping offer better returns and are far more affordable.
Christina Pappas, president of The Keyes Company and Illustrated Properties in Miami, put it this way:
“Many sellers assume that big, expensive renovations will guarantee a higher sale price. 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.”
The takeaway: Sellers should focus less on adding square footage and more on creating a clean, appealing first impression.
2. Prioritizing Curb Appeal Over Screen Appeal
Despite the shift to digital home shopping, 40% of homeowners still believe that great curb appeal makes the best first impression. But in today’s market, buyers fall in love with a listing long before they set foot on the property.
Homes that look great online attract more attention, more showings, and often, higher offers. In fact, homes listed with Zillow Showcase sell for 2% more than comparable non-Showcase listings. That’s because Showcase listings feature what buyers care about on screen:
- Larger, high-resolution photos
- Interactive floor plans
- 3D Home tours that make the listing stand out
Even if your clients don’t use Showcase, professional listing photos aren’t optional—they’re the baseline. If a home doesn’t stand out online, it won’t stand a chance offline.
3. Skipping the Agent Interview Process
About one in four homeowners (25%) said they would skip reading online reviews, researching sales history, and interviewing top candidates when hiring a real estate agent. That’s three key steps… skipped.
This mistake doesn’t just affect agent selection. It also weakens the seller’s competitive edge. In a market that’s still adjusting to new rules, price sensitivity, and consumer skepticism, having the right agent matters more than ever.
As an agent, you want to highlight the importance of your experience, market knowledge, and negotiation skills. Show the homeowner exactly what you do for your clients to attract buyers, negotiate the best terms, and protect your clients’ interests throughout the transaction (and beyond).
If you can back that up with stats, reviews, and client success stories, even better. But if you’re a new agent, focus on what you can do now to build the relationships that will fuel those reviews and success stories in the months ahead.
4. Highlighting the Wrong Features
What sellers think adds value doesn’t always align with buyer behavior. Nearly half of homeowners (45%) believe an open floor plan is the feature most likely to boost a home’s sale price if mentioned in a listing.
But Zillow’s data tells a different story. Homes with open floor plans actually sell for 0.2% less than expected. On the flip side, listings that mention natural materials, like white oak flooring, walnut cabinetry, and soapstone countertops, can sell for up to 3.5% more.
The disconnect here presents an opportunity. Agents who understand what today’s buyers are really looking for can help their sellers emphasize the right features and maximize return.
5. Hiding Issues Instead of Disclosing Them
More than half of sellers (56%) believe they should hide at least one known issue to sell faster:
- 19% would conceal structural problems
- 15% would hide pest infestations
- 15% would hide water damage
- 14% would hide asbestos
This isn’t just a mistake. It’s a potential legal liability. Sellers are required to disclose known issues, and failing to do so can lead to fallout (if not legal action) after closing.
Agents should make this clear from day one. A transparent disclosure process builds trust with buyers and prevents deals from falling apart during inspection.
Final Thought
The margin between a smooth, profitable sale and a disappointing one often comes down to education. Sellers don’t need to know everything, but they do need an agent who does, and who keeps them in the loop.
Use this data to steer the conversation, set expectations, and show your clients what smart selling really looks like.
