What home buyers want: top 10 features

Last month, market data from the Spokane Association of REALTORS® showed 3,044 homes available for sale. At the end of March, there were 376 actual homes that sold. The good news for home sellers is the upward trend in closed sales for two months now, with March figures up 28 percent over sales in February. But, with just 12 percent of the total homes on the market in March sold, Spokane home sellers face a marketing challenge — how to stand out as “most desired” in the minds of potential buyers.

What does today’s buyer look for in a home? This is a great topic to discuss with any Spokane REALTOR®. Area REALTORS® closely follow trends on buyer and seller activity, and two recent studies offer a wealth of great information. The first is the 2007 Profile of Home Buyer Preferences, conducted by the National Association of REALTORS® (NAR). The second is the 2007-2008 National Association of Home Builders (NAHB) Consumer Preference Study. Though unrelated, both had similar sample sizes of about 2,300 respondents, together providing insight into the priorities of both new and existing home buying consumers.

First, from the 2007 NAR study, the chart at the top of the next column highlights the top 10 home features that today’s buyers consider most important during their home search.

If you are considering any home improvements prior to listing your home for sale, the chart can be very helpful in prioritizing your budget and making improvements according to buyer preferences. To stand out over the competition and reach the largest share of interested buyers, when marketing your home, it is important for sellers to highlight these important features.

Today’s buyers believe that the most desirable homes are bigger, younger, and energy efficient. Overall, 94 percent of 2007 home buyers felt energy efficiency was an important consideration when searching for their home. Over four-fifths of all homes purchased were single-family detached homes. From 2004 to 2007, the size of the typical home purchased increased by 100 square feet. The median age of homes purchased decreased from 15 years to 12 years.

Valuable data were also revealed in the 2007-2008 National Association of Home Builders (NAHB) Consumer Preference Study. In the minds of buyers, newly built homes compete with existing homes. Sellers should take time to preview new homes in the Spokane region, to compare features offered in their home’s competitive price range.

Among the top 10 features in the NAHB consumer preferences, (those most frequently rated as “essential/must have” before a consumer would consider buying a specific home), four were energy-related; including a high level of insulation (48 percent), exhaust fans (48 percent), Energy Star-rated windows (36 percent) and equipment-based energy saving measures (34 percent). Of 21 different kitchen features, a walk-in pantry was rated essential or desirable by 86 percent of those surveyed, followed by an island work area (80 percent). Outdoor living spaces were highly valued, including a front porch or deck or patio in the rear. Exterior lighting (33 percent) and fenced yards (33 percent) were the two outdoor features that also made the top 10 list. A laundry room was also considered essential by 55 percent of respondents.

Sellers should not worry if their home does not have all upgrades listed above. Not all buyers surveyed were able to purchase homes with a complete list of their preferred features, but buyer preferences were further validated by home improvements after move-in. The NAR survey polled recent buyers about home improvements they undertook during the first three months following their purchase.

Buyers of homes without a desired feature or room would be willing to pay extra to add central air conditioning, two or more full bathrooms and hardwood floors, for example. Buyers surveyed spent an average of over $4,000 on home improvements after closing, so their purchase decisions were based on getting “most” but not “all” of their preferred features.

So, what do buyers want? “Economic uncertainty aside, we won’t stop spending, improving and dreaming when it comes to home,” according to Gayle Butler, editor-in-chief of Better Homes and Gardens magazine. “What we’ve discovered” she writes, “is that home continues to be our emotional center and the sweet spot of everyday life.”

Your REALTOR® will tell you that home buying includes an emotional component. In order to maximize the best features of every home and to sell a home successfully in today’s market, sellers are encouraged to contact an experienced Spokane REALTOR® for valuable marketing expertise and a seasoned understanding of buyer preferences.