While you may have the competitive advantage of being a home seller in a low-inventory market, your property is still subject to buyer scrutiny. Understanding today’s home buyer can provide you with the necessary insight to sell or invest skillfully.
A recent Zillow Group Consumer Housing Trends Report revealed approximately two in five buyers are willing to consider distressed properties, including foreclosures, auctions and short sales. Even so, new construction holds immense popularity, with nearly half of all buyers considering new development. Generation X and millennials are the two age groups most likely to favor new construction. To learn about these new homes, 40% of buyers use sales centers, while others find them through print ads (39 percent) and direct mail (26 percent). However, only 10 percent of buyers end up selecting a home that hasn’t been lived in prior to sale.
The overwhelming majority of today’s buyers (83 percent) are searching for single-family homes, and more than three-quarters of all buyers end up choosing this type of property. The typical median home purchase includes three bedrooms, 2.2 full bathrooms and one partial bath across 1,900 square feet. Millennials opt for smaller dwellings with a median size of 1,800 square feet, while Generation X and Baby Boomers favor larger homes with a median of 2,000 and 1,950 square feet, respectively.
The most important purchase factors for buyers today include affordability and location. Rather than focusing on aesthetic features, most buyers prioritize layouts and space. Even so, home shoppers still appreciate move-in ready quality. Shared community amenities, proximity to public transit, ample storage and views have the least impact on a home purchase decision.
On average, buyers spend 4.2 months searching for their dream homes, using a combination of online resources (87 percent), a real estate agent or broker (75 percent), referrals (51 percent) and for-sale or open house signs (64 percent).