Understanding What Home Buyers Want

One of the main jobs of house flipping professionals is staying current on what home buyers want. There are some tried and true standards fix and flip investing pros all know that won’t change any time soon – buyers like open spaces, white walls, and nice kitchens. But when it comes to the specifics, what people want has a tendency to change faster than you might think.

Fortunately, the National Association of Home Builders has put out a new survey on the tastes of today’s home buyers.

One of the most important features to today’s buyer is top of the line, energy-efficient features and appliances. Particularly in the laundry room, buyers want the latest and greatest products that will improve their quality of life and also bring down their utility bill. In fact, the survey found that nine out of ten home buyers would rather have energy-efficient features that lower their utility bills than a home without such features that costs 2% to 3% less.

Of course, if the buyer spends 2% to 3% less on the house, they can use those savings to buy new appliances themselves, but the American consumer doesn’t think that way. They want the appliances to be in place, and would be unlikely to spend the money on such appliances themselves.

More broadly, the survey found that home buyers today desire high-end amenities. Surprisingly, 62% of people surveyed said that they preferred high-quality products over more space. Perhaps that has something to do with the fact that so many people in the current housing market are renters. They’re used to living in compact spaces, particularly in expensive areas like Los Angeles and San Francisco, so what they really long for is a double sink in the bathroom and elegant French doors. Other amenities that buyers swoon over include wireless home security systems, a separate tub and shower in the bathroom, and whole-house electronic systems for home entertainment and utilities.

Perhaps just as important as knowing what buyers want is knowing what they don’t want. The survey found that though buyers like to feel a bit pampered by the amenities in their home, they’re not looking for things that the average person wouldn’t find useful. For example, the number one thing that home buyers do not want is an elevator. Other undesirable features include living in a golf course community and wine cooler refrigerators.

Outside of the luxury market, utility mixed with a bit of a “wow” factor seems to be the name of the game. That said, if you’re trying to appeal to a subset of people who love golf communities, those folks probably would like a wine fridge. As always, the most important takeaway is knowing what the people in the neighborhood you’re targeting find most desirable. Wherever you’re rehabbing real estate, look at the houses that have sold recently and find out what features they have in common. Know your community, know your demographic, know your house, and you won’t go wrong.