Pandemic impact alters what homebuyers want in properties, how sellers market them

When the coronavirus took hold in the nation last year, it prompted shifts in buyers’ homebuying and selling preferences.

Buyers began prioritizing affordable, midsized cities over larger metro areas. They sought homes with more square footage as statewide stay-at-home orders forced many to work from home and attend school online.

People also desired more space for home gyms, yards to grow food and chef-friendly kitchens, according to the National Realtors Association’s 2020 Profile of Home Buyers and Sellers.

“The coronavirus without a doubt led home buyers to reassess their housing situations and even reconsider home sizes and destinations,” Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors, said in a statement.

The pandemic has caused home purchases to spike among those renting an apartment or house. More than 45% of homebuyers after April 2020 were previously renters, compared with 36% prior to the pandemic, according to the NAR.

Spokane became a popular relocation choice during the pandemic for out-of-area buyers searching for a better quality of life and outdoor activities.

“They are looking for homes close to recreation or on land,” said Kaya Kennedy, broker with Kelley Right Real Estate Spokane. ” I’m seeing a lot of people moving from bigger cities to escape the crowds, and a lot of people are requesting fiber (internet) because they are working from home more.”

The report indicated downsizing has become less popular. Eighteen percent of sellers who sold their home after March 2020 reported the main reason for putting their property on the market was because “it felt too small,” compared to 13% of consumers who sold homes prior to the pandemic.

Buyers’ interest in multigenerational homes increased during the pandemic for a variety of reasons, including cost savings, desire to spend more time with aging parents and relatives, and the need to accommodate delayed independence of children.

They also indicated buying a multigenerational home allowed them to pool multiple incomes to purchase a larger property, according to the NAR survey.

“It’s getting to where people are looking for four to five bedrooms, and I’m seeing where they want family to come over or even live with them because of the situation with affordability and more people out-of-work (during the pandemic),” Kennedy said.

COVID-19 also has changed how people buy homes, with a new emphasis on incorporating technology into the process as they researched, viewed photos and took virtual tours from their computers and smartphones.

The NAR study found 97% of buyers searched for their home online – an increase from 93% in 2019. Buyers spent eight weeks looking for a home last year, marking the shortest amount of time people spent searching for properties since 2007, according to the NAR.

EXIT Real Estate Professionals broker Laura Branning said she’s conducted several video tours via FaceTime for out-of-area clients, some of whom purchased a home in the Spokane area sight unseen.

“We did a half-hour long video tour. We looked at every nook and cranny of the home,” she said. “I did that for a number of clients and made sure I was there when they got the keys to the house.”

Branning echoed that buyers are placing more emphasis on larger homes with room for home gyms or for guests or family members coming to live with them because of aging or work-related situations.

Properties with views of nature also have become more important as homes turned into multipurpose spaces during the pandemic, she added.

“There has been a paradigm shift of ‘it’s not just a place to rest your head,’” she said.

Changes affect sellers

Sellers also are approaching the listing process differently during the pandemic.

To prevent the spread of COVID-19, property showings, inspections and appraisals are limited to 10 people on-site and by appointment only for counties in Phase 3 of the state’s Healthy Washington – Roadmap to Recovery plan.

Because of strong buyer demand, some listing agents are scheduling viewing appointments in 15-minute increments, said Ken Sax, managing broker for Professional Realty Services.

“That’s not enough time because that’s rushing buyers into making a decision,” Sax said. “We’re trying to get listing agents to allow more time for buyers and even second showings because we want a buyer to be comfortable and certain in their decision.”

Sax said there’s been an increase in what he calls a “flub rate” – or number of contract terminations – as buyers are rapidly submitting offers in the area’s competitive market.

Sax says sellers should verify buyers’ funding before going under contract and carefully evaluate the first offer on the home before accepting it.

“Our flub rate is higher right now and that’s due to buyers’ remorse because they are pulling the trigger so fast,” he said. “If I’m a seller, I may not necessarily want to take the first offer because that’s not going to help me if I go back on the market in two weeks.”

Sax also thinks virtual meetings with buyers and sellers via Zoom and other platforms are here to stay.

“The funny thing is we’ve always had Zoom and it’s so efficient … now that we use it daily – sometimes all day – it makes me think what else do we have currently that would help us?,” Sax said.