Everyone is talking about the tough time those involved in real estate are having, telling horror stories of friends and family who are proof that the national market has fallen down over the last two years.
For some, there is truth to this story—the majority of sellers are having to get serious about pricing and preparing their homes to be "market ready" from the very beginning in order to compete—but for others, many home buyers, for example, the sun is still out, and shopping for real estate sounds like a bright idea.
Opportunity certainly knocks for home buyers. Inventory is high, and there are outstanding deals available on the marketplace. On the other hand, many sellers may be wondering what it is that home buyers seek most in a home, so they may make the necessary improvements and increase the odds of selling.
In August, the National Association of REALTORS® (NAR) published its "2007 Profile of Buyers' Home Feature Preferences," offering insights into the matter.
The NAR conducted a survey encompassing responses from 2,530 home buyers from late 2005 to early 2007, to assess preferences in home features that home buyers consider important when searching for a home, as well as home improvements that buyers undertake within the first three months of purchasing.
It was discovered that the typical home purchased was 12 years old, 1,840 square feet in size, and had three bedrooms and two bathrooms. Also, more than 80 percent of homes purchased had central air conditioning and garages, and less than half had basements. It turns out that central air conditioning came out on top with 74 percent of home buyers saying that it was a "very important" feature.
So, based on this information, sellers who don't have central air conditioning might consider installing it before entering the marketplace, as the vast majority of home buyers value it highly. Other very important features were a garage with two or more spaces, a walk-in closet in the master bedroom, a backyard or play area, a home that is cable/satellite and TV-ready, and availability to high-speed Internet access.
The most significant change between the previous survey in 2004 and the current one in 2007 is that more buyers consider oversized garages as very important. In 2004, oversized garages came in fifth, while this year, they came in second among most desired features.
When regionally split, central air conditioning only came in first in the Midwest and the South, while an oversized garage came in first in the West, and a backyard or play area came in first in the Northeast. Fencing was one item that showed up as a desired feature in the West, coming in third, but did not show up in the top five in any of the other regions.
According to the profile, the median purchase price for a home was $205,000. From 2004 to 2007, the size of the typical home purchased increased by approximately 100 square feet, and the median age of homes decreased from 15 to 12 years.
While home buyers seek bigger and younger homes, they also value energy efficiency. Over 90 percent considered energy efficiency to be either very important or somewhat important. Also, the profile shows energy efficiency as a feature that is more important to older home buyers than it is to younger buyers. The majority of surveyed home buyers purchased homes in suburbs and small towns, as opposed to central cities and rural areas.
In summary, it seems that buyers want bigger, newer homes that are energy efficient, technology equipped, have a play area for the kids, and plenty of room to park the cars. Though this is a fairly broad array of desired features, sellers can do their best to modify their homes accordingly.
The survey also measured home improvement projects that home buyers undertook within three months after purchasing. Approximately six out of ten home buyers began home improvement projects within three months of their home purchase, with the typical buyer spending median amounts of $4,350 on home improvements. Buyers who purchased older homes typically performed more home improvement projects than did those with newer homes.
While the kitchen was the room where most improvements were undertaken, bathrooms and bedrooms follow close behind. Thirty-nine percent of buyers replaced appliances and lighting, while floor coverings and landscaping were also noted as commonly improved aspects of the home.
Sellers may take note, especially during slow times, that making these types of improvements before entering the marketplace, can greatly improve the likelihood of selling.
It is always a good idea to contact a REALTOR® or a qualified home designer for advice before making changes.
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