A lot can change in a year! The current economic recession has dramatically impacted people's perceptions of money and how it should be spent. This has trickled down to the housing market and what buyers now want and don't want in a home. We still find that sellers who go above and beyond in preparing their home for sale are faring the best in the current market. But here is a sampling of what we believe buyers are looking for in 2010:
What Buyers Want:
Smaller Homes-Smaller homes generally mean smaller mortgages, and they are easier/cheaper to heat, clean and maintain. However, design and layout are key; homes that wisely utilize every inch of space will
appeal the most to buyers.
"Green Homes"-Alternative energy sources and energy efficiency are the wave of the future. Buyers want eco-friendly as long as it doesn't drive up the selling price too much. So before you install solar panels on the roof, smaller details such as tankless water heaters, built-in recycle bins, outside composting areas, energy efficient appliances, windows, doors and insulation are all winners in a buyer's eye.
Great Kitchens-With families eating more meals at home, the kitchen is still the heart of the home and a beautiful one will always win a buyer's heart. Plus, with cash and credit tight, buyers don't want to have to do renovations after moving in.
Open Floor Plans-Along with eating at home, more people are entertaining at home to save money. Open floor plans have not lost their appeal.
Outdoor Enjoyment-Buyers want amenities such as large decks/patios, private, level and usable yards, vegetable gardens, fire pits, and outdoor kitchens.
For some, existing in-ground pools and hot tubs are bonus luxuries that the buyer would not have to install after settlement and add to the staycation/entertain at home appeal. However, others may not want the added time and expense involved with the maintenance of a pool or hot tub.
Space to Work at Home-With more two income families working from home, the need for two home offices or at least one large office that can accommodate two workstations is a must for some homebuyers. Privacy and quiet are key, so the kitchen desk space and the dining room table won't cut it for many homebuyers.
In Law Capable Homes-For better or worse, the economy is bringing families together. Kids and grandkids are moving back to the parents' home and many older parents are opting to move in with their children. Shared expenses and live-in child/elderly care make this a practical solution for many families. Homes with features that can accommodate this trend (such as 1st floor master bedrooms or in-law suites), are popular with the buyers that fit this trend.
Practicality-There is a return to the practicality of our forefathers. Families have lost touch of each other and what is important when driven solely by the big house/big car/newest gadget mentality.
What Buyers Don't Want:
McMansions-Many buyers don't want their homes to boast lavish material consumption with amenities such as elaborate wine cellars, his and her master bedroom suites, 3+ car garages, and $50K home theater systems. Even worse, buyers don't want 3500+ sq foot homes with nothing but cheap builder-grade counters, carpet, linoleum, and matching bathrooms (identical tiles, vanities, and fixtures). Home buyers today want good value and quality drizzled with a dose of modesty.
In addition, the McMansions have taken the biggest hit in today's down market. Buyers don't want to risk their finances and neither do mortgage companies who, for all practical purposes, have done away with "jumbo" mortgages (mortgage amounts in excess of $417,000).
High HOA Fees-Home buyers are looking to conserve cash and watch their monthly payments. More than ever, buyers won't even looking at condo and town home developments with excessive monthly fees.
Two-Story Ceilings-While 9' and cathedral ceilings remain architecturally appealing, homes designed without energy efficiency in mind are not as popular today. Big, cold, drafty rooms leave the buyers cold as well.
Fixer Uppers-While buyers are avoiding the McMansions, they also don't have the cash/credit available to make major renovations to a home. Homes that need a lot of renovations are selling at a far greater discount than ever before compared to their neighbors who have maintained their condition. Sellers who go "above and beyond" getting a home ready for sale are always the happiest with the final outcome, i.e. price and time on the market.
Compromised Locations-Similar to fixer uppers, buyers don't want high voltage lines, storm water detention basins, or busy streets/highways nearby. Buyers are more picky now and as they should have been all along.
Risky Mortgages-Most risky mortgages have gone away completely, but buyers don't want them anyway. The foreclosure rate has restored the use of prudence and common sense in home purchasing. Buyers want a mortgage that they can afford in the long run. They're thinking about family planning or the possibility of a lost job.
Overextending-Buyers are looking to keep some cash in reserve after settlement. They are working to keep their personal debt down and trying to be smart about their financial future. More than ever, buyers don't want to put themselves in the position of being "house poor".
~Lisa
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Copyright © 2010, The Scott Loper Team, What Sellers Need to Understand about Buyers in 2010, All rights reserved.
The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213