Consumers lack knowledge of the options available to sell their homes according to a new survey by SOLD.com, the first-of-its-kind educational resource and proprietary recommendation engine for homeowners researching and evaluating the many ways to buy and sell a home.
More Than Half of Home Sellers Spend Less Than Three Hours Evaluating How They Will Sell Their Home – The Largest Financial Transaction They Might Ever Make
While 94% of homeowners feel confident about how to sell their home, SOLD.com’s study suggests that this confidence may be misplaced, as more than half conceded that they were unfamiliar with any options aside from a traditional real estate agent or for sale by owner (FSBO). Strikingly, these two methods are on opposite ends of the spectrum and there are now a myriad of options in between that offer varying degrees of costs and service throughout the selling process. For example, a majority of homeowners indicated they are unaware of alternatives such as selling to real estate investment companies (iBuyers), through discount/flat-fee brokers, or online technology or auction platforms.
The resulting behavior associated with this gap in consciousness is that more than half (58%) of survey respondents who had sold a home before spent less than three hours researching the method and professional they chose to sell their home – often one of the largest financial transactions that people make in their lifetime.
In addition to the general lack of awareness of resources available to sell a home, consumers opting to work with traditional real estate agents don’t necessarily pursue the appropriate due diligence to select the right agent for them. According to a recent report published by the National Association of Realtors, 75% of recent sellers hired the first agent they contacted to help them sell their home. SOLD.com’s survey also found that of those who sold their last home using a traditional real estate agent, 57% said they believe the commissions real estate agents charge are overpriced. Interestingly, the highest satisfaction scores reported by survey respondents were from those who selected alternative home selling routes rather than traditional agents.
“The stark reality is consumers are choosing options that don’t necessarily align with their needs and are taking unnecessary risks with one of the largest financial transactions of their lives,” said Matt Woods, President of SOLD.com. “SOLD.com is an unbiased resource that recognizes that not only are every seller or buyer’s preferences and circumstances unique, but the options that are available to them are as well. We provide the data and science to easily identify the best method for them to achieve their objectives – whether that means selling quickly or for the highest price.”
Genders Juxtaposed: Men and Women Approach Selling Homes Differently
SOLD.com’s study revealed several differences between the outlook and perspectives of men and women when it comes to selling, or considering selling, homes. Men profess to be on the move, with 40% planning to move in the next 2-3 years, compared to just 24% of females. Men also exhibit more confidence when it comes to home selling, with 73% feeling “very confident” that they know the best way to sell a home, compared to just 49% of women who claim the same answer.
When deciding which method to use, women rely more on professional resources while men are more inclined to speak with friends and family and to do online research. Women tend to be less aware than men of home selling alternatives to the traditional agent route. That said, females are more unhappy with the fees that agents charge with 61% of women saying that agent commissions are overpriced compared to 43% of males.
Home Selling Myths and Misconceptions: Debunked
Many people are misinformed about financial implications of selling homes. For example, when asked whether it’s important to have a good credit score when selling a home, 72% of respondents answered yes. In reality, this is not the case – it’s only important to have good credit when purchasing a home.
While many might assume that finances drive the selling process, when asked what consumers are most worried about related to selling a home, the top concern (43%) was “getting the home ready to sell” (i.e. home renovations, repairs, etc.). Many consumers also place more concern on emotional factors. Respondents noted stress and anxiety of moving (27%) as a larger concern than financial implications (21%). These findings highlight the emotional component of selling a home, which can be just as important to people as the enormity of the financial elements of the transaction. That said, when it comes to money, the two most troubling aspects of finances associated with selling a home are coordinating the timing of selling and buying (28%) and tax implications associated with the sale (27%).
“Doing the appropriate research about the options and the varying degrees of services available can help to temper – or even eliminate – both financial and emotional concerns around selling a home,” continued Woods. “Resources like SOLD.com can reduce stress by evaluating a seller’s objectives, preferences, local market factors and more; educating them about their options and recommending the best path forward. From there, we serve as a partner, guiding home sellers through the process and identifying and assisting with important steps to take and items to consider.”
These findings are from a survey conducted in April 2019 by Toluna on behalf of SOLD.com. A sample of 1,000 homeowners from the continental United States and Hawaii were interviewed online, in English.
SOLD.com is the first-of-its-kind free, unbiased, educational resource and comparison engine for consumers researching the best method to buy and sell their homes. The SOLD.com platform aggregates disruptive real estate services and top local brokers in one place to inform and educate users about the many options available to them. SOLD.com then uses its proprietary technology and personal concierge services to analyze objective and subjective factors – including local market characteristics, customer service rankings and personal preferences – to provide users with a free and unbiased recommendation for the most efficient, cost-effective route to buying or selling a home.
For more information, please visit https://www.SOLD.com/.