SEATTLE, May 2, 2018 /PRNewswire/ -- Homebuyers –
especially first-time buyers shopping for entry-level homes –
can expect to pay a significant premium for houses with listings
that tout popular farmhouse or craftsman-inspired features,
according to a new report from RealEstate.com, a Zillow Group®
brand tailored to helping first-time buyers find and budget for
their first homei.
RealEstate.com® analyzed listing descriptions from millions of
entry-level homes – defined as those priced within the bottom third
of the market – to see how certain home features, amenities and
design styles affected sale price.
Starter homes mentioning "coffered ceilings," "claw foot tubs"
or "farmhouse sinks" in their listing descriptions saw some of the
highest sale premiums of the keywords analyzed – selling for as
much as 29 percent above expected values. Furthermore, homes
described as "craftsman" performed better than any other design
style analyzed. Even though Chip and Joanna
Gaines' 'Fixer Upper' TV show may be over, their farmhouse
chic style has certainly had an impact on home trends, especially
among entry-level homes or first-time buyers.
Energy efficient features also command high premiums among
entry-level homes. Homes mentioning "solar panels" sell for as much
as 40 percent more than expected, but mentions for higher-tier
homes only saw a 13 percent boost.
Millennials are playing an increasingly larger role in the
housing market. They make up 42 percent of all homebuyers today and
71 percent of first-time buyers, and their preferences – from
location to home features – may have an increasingly notable
impact on the marketii.
"In today's competitive housing market, understanding what homes
may command a premium or attract multiple offers can be hugely
beneficial to buyers," says Jeremy
Wacksman, Zillow Group chief marketing officer. "However,
it's important to keep in mind which features or amenities matter
most to you in a home. While a farmhouse sink or butcher block
counters may appeal to many millennials and first-time buyers, not
everyone may want to pay the premium those features may command."
Buying a home can feel like a moving target. With 24 percent of
homes selling over list price, determining a realistic budget – and
sticking to it – can be challengingiii. To help
first-time buyers, RealEstate.com allows home shoppers to search
for homes based on the home's "All-In Monthly Price," which
includes estimates for costs such as mortgage, property tax and
utilities, giving them a more accurate picture of the cost of
homeownership.
Home
Feature
|
Sales Premium
Among
Entry-Level Homes
|
Sales Premium
Among
Top-Tier Homes
|
Solar
panels
|
40%
|
13%
|
Craftsman
|
34%
|
20%
|
Coffered
Ceiling
|
29%
|
20%
|
Clawfoot
Tub
|
29%
|
10%
|
Mid-century
|
28%
|
12%
|
In-law
|
28%
|
6%
|
landscape/path/outdoor/deck lighting
|
26%
|
15%
|
Exposed beam or
ceiling
|
26%
|
15%
|
Farmhouse
sink
|
26%
|
16%
|
Wainscot
|
26%
|
13%
|
Fire pit
|
25%
|
12%
|
Central
Vacuum
|
25%
|
10%
|
Pergola
|
25%
|
4%
|
Mudroom
|
24%
|
13%
|
Tankless Water
Heater
|
24%
|
7%
|
Playroom
|
23%
|
5%
|
Heated floor; radiant
heat
|
23%
|
25%
|
Exposed
brick
|
23%
|
5%
|
Quartz
|
23%
|
11%
|
Home
Theater
|
23%
|
21%
|
Barn Door
|
23%
|
6%
|
Shaker
Cabinet
|
23%
|
7%
|
Gas
Furnace
|
23%
|
-5%
|
Outdoor
Kitchen
|
23%
|
28%
|
Hardwood
|
22%
|
2%
|
Jacuzzi
Tub
|
21%
|
2%
|
Outdoor Fireplace or
Pit
|
21%
|
24%
|
Picket
Fence
|
21%
|
N/A
|
Butcher
Block
|
20%
|
6%
|
About Zillow Group
Zillow Group (NASDAQ:Z) (NASDAQ:ZG) houses a portfolio of
the largest real estate and home-related brands on mobile and the
web, which focus on all stages of the home lifecycle: renting,
buying, selling and financing. Zillow Group is committed
to empowering consumers with unparalleled data, inspiration and
knowledge around homes, and connecting them with great real estate
professionals. The Zillow Group portfolio of consumer
brands includes real estate and rental marketplaces Zillow®,
Trulia®, StreetEasy®, HotPads®, Naked
Apartments®, RealEstate.com and Out East®. In
addition, Zillow Group provides a comprehensive suite of
marketing software and technology solutions to help real estate
professionals maximize business opportunities and connect with
millions of consumers. The Zillow Instant Offers™ marketplace
provides homeowners with the opportunity to receive offers from
buyers, including Zillow in some metropolitan areas. When Zillow
buys a home, it will make necessary updates and list the home for
resale on the open market. The company operates a number of
business brands for real estate, rental and mortgage professionals,
including Mortech®, dotloop®, Bridge Interactive® and New Home
Feed®. The company is headquartered in Seattle.
Zillow, Mortech, Bridge Interactive, StreetEasy, HotPads, Out
East and New Home Feed are registered trademarks of Zillow,
Inc. Zillow Instant Offers is a trademark of Zillow, Inc.
Trulia is a registered trademark of Trulia, LLC. dotloop
is a registered trademark of DotLoop, LLC. Naked
Apartments is a registered trademark of Naked Apartments,
LLC.
i This analysis measured how listing keywords
associated with different home features can impact the sale price
of homes in the lower-third value tier compared to the upper-third
value tier, holding constant other factors. We analyzed 1.9 million
home sales between 2016 and 2017 to identify which home attributes
found in listing descriptions are associated with a higher sale
price and less time on market. Multiple regression was used to
control for the age and size of the property, the year and quarter
of sale, zip-code-level ZHVI at time of list (local market cost),
and MSA-level ZHVI growth compared to national growth at time of
list (local market hotness).
ii Data from Zillow Group Consumer Housing Trends
Report 2017.
iii According to a Zillow analysis.
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SOURCE Zillow Group