How the Real Estate Market Can Shape Your Business
Buying and selling trends influence the type of remodeling jobs homeowners ask for. Learn more in this story and webinar
The real estate market can shift, fluctuate and vary by region, but regardless of the current state of your market, there are many opportunities for home improvement professionals to work on projects preparing homes for sale or customizing recently purchased homes.
The Houzz webinar “How Real Estate Market Trends Can Shape Your Business” underscores that understanding market trends can help home pros respond to the needs and wants of prospective clients. You can watch the full half-hour webinar below, but here’s a quick overview featuring the expertise of real estate agents around the country.
The Houzz webinar “How Real Estate Market Trends Can Shape Your Business” underscores that understanding market trends can help home pros respond to the needs and wants of prospective clients. You can watch the full half-hour webinar below, but here’s a quick overview featuring the expertise of real estate agents around the country.
Seller’s Market
In a seller’s market, home prices are typically higher because there are fewer homes on the market. Buyers may have less room in their budgets to invest in improvements and renovations after purchasing. Likewise, sellers are less motivated to upgrade their homes because they feel confident the home will sell as-is.
“The low supply of homes for sale combined with the high demand coming from a huge number of buyers has been impacting the market,” Dianne Johnson of Village Properties in Santa Barbara, California, says. “Supply shortages result in multiple offers, higher prices and lots of frustrated buyers. If a house is on the market, even if the house is in need of an overall remodel, buyers can still be interested.”
However, in a seller’s market, some homeowners who consider moving to a new house are more inclined to upgrade their existing home to stay where they are. You may be able to convince a client to renovate instead of move by addressing the pain point that got them thinking about moving.
In a seller’s market, home prices are typically higher because there are fewer homes on the market. Buyers may have less room in their budgets to invest in improvements and renovations after purchasing. Likewise, sellers are less motivated to upgrade their homes because they feel confident the home will sell as-is.
“The low supply of homes for sale combined with the high demand coming from a huge number of buyers has been impacting the market,” Dianne Johnson of Village Properties in Santa Barbara, California, says. “Supply shortages result in multiple offers, higher prices and lots of frustrated buyers. If a house is on the market, even if the house is in need of an overall remodel, buyers can still be interested.”
However, in a seller’s market, some homeowners who consider moving to a new house are more inclined to upgrade their existing home to stay where they are. You may be able to convince a client to renovate instead of move by addressing the pain point that got them thinking about moving.
Home Shopper Preferences
What consumers want in a home will vary based on the individual buyer’s personal needs, taste, budget and location. However, there are patterns that can help inform home renovation professionals, and knowing the trends can be helpful whether you’re working to prepare a home for sale or on a recently purchased home.
Here are some trends that agents have noticed about home shopper preferences based on buyer age:
Younger buyer preferences. “First-time homebuyers are looking for properties that are close to public transportation and are mostly move-in ready, with nice kitchens and bathrooms and trendy paint colors,” Lisa Brady of Long and Foster Real Estate in the Washington, D.C., metro area says.
“Millennial homebuyers are consistent with their desire for ease,” Rachel Walsh of Sotheby’s International Realty in Fairfield County, Connecticut, says. “That usually equates to high-end automated gadgets, appliances and AV equipment.”
What consumers want in a home will vary based on the individual buyer’s personal needs, taste, budget and location. However, there are patterns that can help inform home renovation professionals, and knowing the trends can be helpful whether you’re working to prepare a home for sale or on a recently purchased home.
Here are some trends that agents have noticed about home shopper preferences based on buyer age:
Younger buyer preferences. “First-time homebuyers are looking for properties that are close to public transportation and are mostly move-in ready, with nice kitchens and bathrooms and trendy paint colors,” Lisa Brady of Long and Foster Real Estate in the Washington, D.C., metro area says.
“Millennial homebuyers are consistent with their desire for ease,” Rachel Walsh of Sotheby’s International Realty in Fairfield County, Connecticut, says. “That usually equates to high-end automated gadgets, appliances and AV equipment.”
Older demographic. “The older demographic is more open to fixer-upper homes,” Sharon Lewis of Keller Williams in Raleigh, North Carolina, says. “But they are more often substantial projects with asbestos, lead paint and aluminum wiring, so not just cosmetic fixes.”
Steve Lewis of Syringa Realty in Boise, Idaho, says: “In our area, a large buyer demographic is retirees or buyers looking to downsize, so they want single-level, low-maintenance homes located close to public services.”
Steve Lewis of Syringa Realty in Boise, Idaho, says: “In our area, a large buyer demographic is retirees or buyers looking to downsize, so they want single-level, low-maintenance homes located close to public services.”
Tell us: How has the real estate market affected your business? Share your stories in the Comments.
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In a buyer’s market, home prices are typically lower, making a home more affordable. There’s generally more inventory on the market, so buyers have the opportunity to negotiate and be more selective.
“Sellers are looking to invest a few thousand or less in their homes to list, unless the investment will pay off,” DeAnn Kamp of Home Buyers Marketing in Bonita Springs, Florida, says. “New appliances are a huge hit with buyers, as are bathroom or kitchen updates. An updated or serviced HVAC unit, fresh landscaping or new flooring always helps.”
Because of this, sellers in a buyer’s market are more inclined to upgrade or improve their property to attract homeowners who want a move-in-ready house and to capture the highest perceived return on their overall investment. For home renovation professionals, this means you may be able to get business from home sellers looking to improve curb appeal, carry out necessary repairs or change out unpopular or outdated features.