After two years of steadily rising prices, the housing market is starting to “cool off.” Here in Michigan, the median sale price was down 0.39% in February, and yet the number of homes sold dropped 28.7%. With mortgage rates at a 20-year high, sellers are reducing prices, shifting it to a buyer’s market. But what do today’s homebuyers really want?
Although every homebuyer’s “wish list” is unique, there are some features that consistently make the top of the list. With a new generation of homeowners (those under 40), some of the most important home features have changed in recent years, while others have remained constant. Here’s what today’s homebuyers are looking for:
#1. Space
This applies to both property and interior space. Homes don’t have to be huge (the median requested square footage is 2,200 feet), but rather thoughtfully laid out. Many people are moving to Michigan, especially to more rural areas, from larger cities. They’re looking for more room to spread out. This includes outdoor space (see #3), which provides room to entertain, plant a garden, or just relax, as well as a yard for kids and pets to run and play.
What this means: If you have a lot of square footage or a generous yard, be sure to highlight these features in your listing. If you’re short on space, you can provide the illusion of more room by clearing out clutter, removing extra furniture or downsizing furniture, keeping paint and flooring neutral, using one type of flooring (i.e., all wood, all carpet) throughout the house, and taking down heavy drapes or curtains that block light. For outdoor areas, be sure to clear out weeds and brush, tidy landscaping, choose small-scale patio furniture, add colorful plants to liven up the space, include tall planters and accent pieces to draw the eye upward, and divide the space into distinct sections which can give the illusion of more room.
Make a small room seem bigger with scaled down furniture, open legs, a neutral palette and lots of light. (Photo: Kristen Perers for Remodelista)
Dividing a patio into “rooms” can make the space seem larger. (Photo: MavenStock/Shutterstock)
#2. Open floor plans or a good flow
Some experts have predicted the demise of “open concept living.” Zillow reports that a growing number of listings included the mention of “private spaces.” This may be due to the new working from home trend, which requires office space. However, according to Fixr, 90% of homebuyers still want an open floor plan, which offers a feeling of spaciousness without increasing square footage. It also works well for entertaining and interacting with family members. If you have an older home that doesn’t lend itself to this type of layout, it’s not a deal breaker: Older homes with a good flow to the rooms can also be attractive.
What this means: Create the illusion of openness with less furniture, consistent flooring throughout the house, and more natural light from your windows. Try to maintain design or color continuity throughout the house, preferably in light, airy neutrals, which creates a flow. For a decluttered, open feel, opt for a sectional sofa instead of separate sofas and chairs that take up more floor space. Keep doors open between rooms. Some designers are removing doors entirely to rooms that don’t require privacy. If it’s in the budget, you can create a more open floor plan by removing a wall and replacing it with a new support beam or columns.
Replacing separate chairs and sofas with a low sectional, keeping the color scheme airy and neutral, and taking advantage of natural light can create the illusion of an open floor plan.
#3. Outdoor living spaces
This is a must for today’s buyers! According to Zillow, backyards are mentioned 22% more often in listings compared to last year. And patios are requested by 82% of homebuyers! Pools and covered porches have also increased in popularity. Since the pandemic, people have been getting outside more and appreciating their outdoor spaces. These outdoor living areas also extend the home’s footprint, creating more room to relax and entertain. People want a place to sit outside, drink coffee, entertain guests or watch their kids play.
What this means: If you’re looking to make a significant improvement to your home, consider installing a patio, which could increase the value of your home considerably. Patios are often simpler and more cost effective to install than decks. If you already have a patio or deck, consider sprucing it up to create an attractive, welcoming outdoor living space.
With the right elements, even a small patio can enhance your home’s value. Create an outdoor room with an area rug, comfortable furniture, and lighting. Tall plants and curtains draw the eye upward making the space seem bigger.
#4. A pole barn
This feature is very specific to rural areas here in Michigan. Many people moving “out of town” are looking for a pole barn. In fact, we’ve seen homebuyers (particularly men) walk away from a perfectly good house because there wasn’t a pole barn on the property or room to build one! Technically, a pole barn is a structure built using telephone poles, which makes it affordable to build and very durable. However, the term is used to describe a wide variety of “outbuildings.” Whatever term you use, the popularity of these structures can’t be denied. People are looking for additional storage for recreational vehicles, such as RVs and ATVs. Additionally, many people have hobbies, such as woodworking or restoring vintage cars that require an outbuilding. We also suspect that most men dream of having a “man cave” or personal space away from the house! Of course, it could also be used as a “she shed.” No matter how it’s used, an outbuilding can add $10,000 or more to a home’s value.
A pole barn or outbuilding can add $10,000 or more to your home’s value.
Other Popular Features
In addition to the major items listed above, today’s home buyers have a list of highly requested features. They may seem like minor issues/additions, but a surprising number of buyers comment if they aren’t present. If you’re looking to renovate or make improvements before listing your home, consider the following most-wanted home features:
- First floor laundry rooms (87%)
- Exterior lighting (87%)
- Energy efficient windows (83%)
- Ceiling fans (especially in the primary bedroom) (83%)
- Walk-in pantry in the kitchen (81%)
- Energy STAR-rated appliances (81%)
- Hardwood or manufactured wood flooring in the main living areas (81%)
Talk to a Professional
While offering what buyers want can increase your home’s value and potentially speed up a sale, it’s important to remember that every property is unique. There are many ways to highlight your home’s other features and downplay what’s “missing” through proper staging. Before spending money on renovations or enhancements to your home, talk to a professional about what makes the most sense. Consulting a professional real estate agent is your best bet for making your home more appealing to as many buyers as possible.
Other sources:
https://www.realtrends.com/articles/home-features-the-next-generation-of-buyers-want-in-2023/
https://www.remodelista.com/posts/how-to-make-a-room-look-bigger-11-expert-tips/
https://www.hgtv.com/design/remodel/interior-remodel/how-to-open-up-living-spaces-pictures
