Research shows the words used to describe a home may affect the way buyers perceive the property before it is even viewed. The way a home is described in the listing, therefore, may have a significant impact on how well the home does on the market. Homes described with certain keywords or phrases tend to attract higher offers and/or sell more quickly than the average listing.
Home Designs Affect Sales
Research by Zillow indicates that certain home characteristics bring higher sales prices and sell more quickly. The research is based on buying trends in 2018 and 2019, particularly regarding words used to describe the home in online listings. By comparing certain descriptions to average sales, notable trends became apparent.
According to the findings, buyers tend to pay more for homes described in specific ways.
- Words like “modern farmhouse” and “craftsman style” are associated with higher sales prices.
- Words like “fixer-upper” and “investment” are associated with lower sale prices.
Other descriptive words are associated with a quicker sale.
- Words like “smart sprinkler system” and “drought-resistant landscaping” are associated with listings that sold more quickly.
- Words such as “wellness” and “professional appliances” are associated with listings that sold more slowly.
While these findings are evidence of the importance of using the right descriptive words in a listing, the truth is more nuanced.
- Buyers tend to be willing to pay more for a home or purchase more quickly only when the home listed matches the description.
- Homes that are falsely advertised or only loosely meet the description do not see the same benefits as those that are accurately described.
The descriptive words and phrases studied are most useful at identifying what is important to buyers. Words that buyers associate with quality, low-maintenance, and customizable homes tend to give more benefits than words associated with high-end finishes or high-maintenance purchases.
Buyers Keep Up with Changing Trends
The words and phrases used for homes that sold at a higher price or sold more quickly reflect the trends and styles that interest modern buyers. Keeping your home updated (or at minimum updating it before putting it on the market) to meet buyers’ expectations can result in a high sales price and a quicker sale.
In general, the keywords buyers lean toward in 2020 tend to relate higher quality homes. High quality should not be confused with high-end or upscale. Buyers are often willing to spend a little more on homes that won’t need immediate renovations before moving in, or homes that are easily adjusted to their liking without a significant investment. Properties that require more work to help the buyer feel at home are less attractive, forcing prices down.
Current Buyer Preferences
Here is a breakdown of the key phrases revealed by Zillow’s research of the top 5 features resulting in a higher price and the bottom 5 features resulting in a lower price. Likewise, we have the top 5 features resulting in a faster sale and the bottom 5 features resulting in a slower sale.
Higher Price
Top 5 features for sales price premium:
- Modern farmhouse: +10.3%
- Waterfall countertop: +9.4%
- Moroccan tile: +7.3%
- Craftsman style: +6.0%
- Exposed brick: +6.0%
Lower Price
Bottom 5 features for sales price premium:
- Water slide: -1.6%
- Bicycle storage rack (+ similar variations): -2.9%
- Investment: -10.0%
- TLC: -17.4%
- Fixer-upper: -27.8%
Quicker Sale
Top 5 features for sales speed:
- Smart sprinkler system: +15.1
- Rattan: +12.8
- Drought resistant: +12.0
- Mid-century: +10.5
- Board and batten: +8.7
Slower Sale
Bottom 5 features for sales speed:
- Professional appliance: -15.0
- Steam shower: -15.7
- Steam oven: -18.9
- Wine cellar: -19.1
- Wellness: -24.5
Zillow’s full report: Home Features That Sell: Why Rustic Chic is all the Rage
Data Discrepancy
Similar research has been conducted by other online home sale platforms with varying results. While “modern farmhouse” may be the top feature according to Zillow, other sources suggest it may be features such as “gourmet kitchen” or “theater room.” Depending on which platform a home is listed on, data may point toward slightly different buyer preferences. However, the emphasis on perceived quality and turnkey homes remains consistent.
While these studies focus mainly on what helps increase the average sales price and sales time, other studies focus on the benefits of standing out in positive ways. The average buyer may learn toward popular modern trends in design or style, but other buyers may be more attracted to the unique characteristics of a home.
Overall, these studies all point toward strategies to help buyers invest in more profitable pre-sale renovations and to advertise homes in a way that attracts the right buyers more quickly. Sellers may be able to maximize sale prices or sell more quickly by emphasizing the most attractive features of a home, and prospective sellers planning renovations to update a home can make decisions that may have a positive impact on resale value.
Marimark Realty
Marimark Realty, home to the top buyer’s agents in Tampa, Florida focuses on providing a personalized experience for buyers and sellers of real estate. As a full-service real estate agency, we help clients with luxury homes, homes for first-time homebuyers, commercial property, and investment property.
To begin the journey of purchasing or selling your home, or purchasing commercial or investment properties, contact us at your earliest convenience.