Home sellers often turn to a fresh coat of paint for a quick and affordable update before listing their property. However, new data from Zillow reveals that choosing the wrong color for a specific room can significantly decrease a home's value, potentially costing sellers nearly $4,000.
According to Amanda Pendleton, a Home Trends Expert at Zillow, the most common mistake sellers make is not using a bold color, but using the wrong color in the wrong space. This choice can create a negative perception among potential buyers, influencing their offer price.
Key Takeaways
- Zillow analysis shows certain paint colors can lower a home's sale price by thousands of dollars.
- A daisy yellow kitchen may reduce a home's value by an estimated $3,915.
- Buyers often perceive dark, contemporary colors like olive green and navy blue as signs of a well-maintained, modern home.
- The core mistake is not using bold colors, but rather applying them in rooms where buyers expect more neutral or contemporary tones, such as kitchens and living rooms.
- Beyond paint, sellers can boost value with high-quality online listings, strategic timing, and highlighting in-demand design features.
The Financial Impact of Interior Paint Choices
While painting is one of the most popular pre-sale projects undertaken by homeowners, its financial return is not guaranteed. The choice of color can either enhance a property's appeal or detract from it, with measurable financial consequences.
Amanda Pendleton of Zillow emphasizes that sellers should think strategically about color placement. "The biggest mistake a homeowner can make is painting the wrong color in the wrong room," she states. This isn't about avoiding personal taste entirely, but about understanding market preferences for key areas of the home.
By the Numbers: Colors That Cost Sellers
Zillow's paint color analysis quantified how much buyers might devalue a home based on specific colors in certain rooms:
- Daisy Yellow Kitchen: -$3,915
- Daisy Yellow Living Room: -$3,891
- Fire Hydrant Red Bedroom: -$1,987
- Fire Hydrant Red Living Room: -$1,820
These figures highlight that bright, primary colors in major living spaces can be a significant financial liability. While a homeowner may love a cheerful yellow kitchen, prospective buyers may see it as a project they need to immediately undertake and fund, factoring that cost into their offer.
Understanding Buyer Psychology and Visual Cues
The strong reaction to paint color is rooted in buyer psychology. Pendleton explains that purchasing a home is a complex process filled with uncertainty about hidden issues like plumbing or structural integrity. In this environment, buyers rely heavily on visual cues to assess a property's condition.
"When you’re shopping for a home, you don’t know what’s behind the walls or what’s under the floorboards, so you jump to conclusions based on visual cues," Pendleton explains. "And color is one powerful visual cue."
Buyers often use paint color as a shorthand indicator of how well-maintained and up-to-date a home is. Colors perceived as dated can create a negative "halo effect," leading buyers to assume the entire property may need work.
Contemporary vs. Dated Perceptions
According to Zillow's research, buyers tend to associate certain color palettes with modernity. Darker, moodier tones like olive green and navy blue are often seen as contemporary. Conversely, bright primary colors can be perceived as dated, signaling to a buyer that other elements of the home might also be out of style.
This perception can influence how a buyer views everything from the fixtures to the flooring, even if those elements are in perfect condition. The initial impression set by the wall color can frame their entire tour of the home.
Colors That Can Increase Home Value
While some colors can hurt resale value, others can have the opposite effect. The Zillow study found that buyers are currently drawn to colors that create a cozy, personalized, and contemporary atmosphere. Surprisingly, this trend favors darker, more dramatic shades over safe, neutral whites.
"Today’s buyers are drawn to dark, dramatic colors that make a home feel cozy, contemporary and personalized," says Pendleton. She notes that specific shades consistently contributed to higher offer prices in their research.
Top Performing Colors
The analysis revealed that certain colors outperformed not only the value-detracting shades but also lighter variations and even all-white rooms. The top performers included:
- Olive Green
- Navy Blue
- Charcoal Gray
These colors were found to add value in various rooms studied, suggesting that a strategic, modern color palette can be a wise investment for sellers. The key is to match the color to the room's function and the overall desired aesthetic that appeals to today's market.
Additional Strategies to Maximize Sale Price
Beyond paint, Pendleton recommends several other data-backed strategies for sellers looking to maximize their home's value and attract competitive offers. These tips focus on marketing, timing, and highlighting specific features.
1. Focus on 'Screen Appeal'
In the digital age, a home's first showing happens online. Pendleton notes that "screen appeal is the new curb appeal." A high-quality digital listing is crucial. Zillow research indicates that listings with a complete media package—including high-resolution photos, interactive floor plans, and 3D virtual tours—can sell for 2% more than similar homes. For a typical home, this could mean an extra $9,000.
2. Ensure Maximum Exposure
To generate more interest and potentially multiple offers, sellers should ensure their home is listed on the Multiple Listing Service (MLS). According to Zillow's data, homes not listed on the MLS sell for a median of 1.5% less. This translates to a potential loss of nearly $5,000 for the average seller.
3. Time the Market Strategically
Timing can have a significant impact on the final sale price. Zillow's research has identified a peak selling window. Homes listed in the last two weeks of May tend to sell for 1.6% more than at other times of the year. Sellers with flexibility should aim for the spring market, typically from April to June, and consult with a local agent to identify the optimal listing time for their specific neighborhood.
4. Highlight In-Demand Features
Current design trends can also influence a home's value. Pendleton points to the rise of "organic modernism" as a successor to the modern farmhouse style. Buyers are willing to pay more for homes with nature-inspired features. Highlighting elements like white oak floors, soapstone countertops, walnut cabinets, or Venetian plaster walls can help a home sell for as much as 3.5% more, according to Pendleton.
