Modern features, such as soapstone countertops and beverage centers, signal to buyers the home is either new or recently remodeled.
NEW YORK – Home buyers are willing to pay more for a backyard decked out with all the bells and whistles. New Zillow research finds homes equipped with an outdoor TV command 3.1% more than expected or $10,749 on a typical U.S. home. That’s the highest sale price premium of all 359 features Zillow analyzed across nearly 1 million home sales in 2023.
Homes with other desirable backyard features such as an outdoor shower, pizza oven and bluestone patio also fetch higher-than-expected sale prices when those features are mentioned in a listing description. Six of the top 10 features that help homes sell for more are outdoor features, signaling that the pandemic-era demand for functional outdoor space remains.
Certain trendy or viral features can attract more competing buyers, contributing to a speedier sale. Rounded corners, popular in contemporary furniture design and now architecture (hello, curvy kitchens), can help a home sell six days faster than similar homes. #Plantparents snap up homes that mention a plant ledge in their listing description more than five days faster than expected. Statement terrazzo tile can help a home stand out and sell nearly four days faster.
“When certain home features or design styles are highlighted in a listing description, they serve as a signal to a buyer that a home is appealing and up to date. As a result, those features can help a home sell faster and for more money,” said Amanda Pendleton, Zillow home trends expert. “On the flip side, certain features can suggest a home is dated and needs work and can lower a home’s sale price. Features like laminate or tile countertops can hurt a home’s value by at least 1% when mentioned in a listing description.”
In with the new
Modern features that signal a home is either brand new or recently remodeled contribute to higher sale premiums. The current look of contemporary homes often incorporates matte black finishes and white oak flooring, which can boost a home’s sale price by 2.9% and 1.6% respectively.
Soapstone now outperforms quartz as the countertop material of choice, contributing to a sale premium of 3% versus 1.7%. And a beverage center is the new wine fridge. Beverage centers can help a home fetch a 2.4% sale premium, compared to 0.9% for wine fridges. These undercounter refrigerators offer different temperature settings for different types of beverages, not only wine.
If you’ve got it, flaunt it
Homeowners looking to sell for top dollar this spring will want to highlight these home features if they’ve got them. However, installing an outdoor shower or any of these individual features solely for resale may not deliver these kinds of returns. Instead, these keywords should be viewed as signals about everything else a home has going for it. For instance, if a home has an outdoor shower, it probably has a pool or is close to the beach, which is what buyers are ultimately willing to pay more for.
Sellers should also keep in mind that features that help homes sell in one neighborhood may not resonate with buyers somewhere else. An experienced local real estate agent with extensive market knowledge can help sellers highlight the right features and will likely have other creative pricing and marketing strategiesto help maximize a home’s sale price.
Affordability curbs features’ price premiums
Price premiums for individual features were lower across the board in 2023 compared to previous years, as buyers’ budgets were constrained by higher mortgage rates. Affordability remains the biggest hurdle for home buyers, particularly first-time buyers, who must prioritize “need to have” features over “nice to have” features.
Home shoppers will face similar affordability challenges this spring home shopping season, along with more competition for homes that have sought-after features. Affordability calculators can help buyers set a budget, and buyers can then search for homesby monthly coston Zillow instead of by purchase price. With attractive homes flying off the market in only17 days, prospective buyers should get pre-qualified for a mortgage first, so they can act quickly when the right home comes along with or without an outdoor TV.
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