We all know there’s a lot of houses on the market. Inventory is high. Values are down. It’s harder to get a loan. Interest rates are low. People’s discretionary income is lower. So what does all this mean in terms of the housing market? Here’s a list of some items that Bankrate.com has put together of what home buyers are looking for when they buy a home this year. This will also help sellers be aware of how to stage their home and what buyers are looking for when it comes time to negotiate.
1. A deal. An amazing deal. They want to tell everyone they know that they got this amazing house for such a good deal. In 2007, it would have cost them $500,000, but they just closed on it for $395,000. So this makes them a lot more critical. They’re going to take longer than usual to find a house. They’re not going to feel like they have to settle. And that’s because they don’t. Unfortunately for sellers, buyers hold the power when negotiating right now. So understand that when turning away a low offer. It might be worth it just to counter to see what happens.
2. Good condition. I mentioned before that discretionary income is limited. They don’t want to have to redo carpet and paint and put in new appliances. They want homes that are more updated and in good condition. When showing your home, make sure it’s clean and presentable. It’s like putting your best foot forward at a job interview. You only get one shot. Make it a good one. And reconsider taking your appliances with you when you move. It’s likely the buyers want them to stay with the home.
3. More green. It’s a lot more common these days to find buyers looking for energy-efficient appliances, windows, furnaces, and air conditioners. Again, this helps them save money down the line, aside from being good for the environment. Buyers want to know that maintaining their home will be easy on the wallet. So if you are looking to sell and plan to upgrade some items, try to go as green and energy efficient as possible.
4. Smaller homes. This is not to say that if you are selling a 5,000 square foot home that nobody will be interested. But consider how you stage your home. Make use of space. It’s more common that buyers aren’t interested in a sitting room. Make it into an office. Create a craft room with your sixth bedroom. Buyers want homes that serve a purpose because they don’t feel like they need the extra space if all it is is just space. “Three to five years ago, if they could get a loan that would get them into a McMansion with stone and tile and brick and more rooms than they needed, they would do it,” says Jeff Wiren, president of the Portland Metropolitan Association of Realtors. “Now they’re saying ‘I don’t know if I want to heat that place and clean it.’ They’re being much more realistic.”
So those are four of the nine items that Bankrate thinks buyers are looking for in 2011. What do you think? As a buyer, do you agree? I’d love to hear your thoughts. Please leave me a comment or visit me online.