Selling in Today’s Real Estate Market, A Growing Segment Going It Alone!
As in any sale, one must have a keen understanding and profile of the purchaser of their product. The same is true for anyone who is contemplating a successful transaction in an ever-changing real estate market. Over the years I have observed a change in buyer’s expectations when searching for that right home which meets their requirements.
Young people today are delaying marriage and having children later in life. This has led to the increase of single buyers purchasing on one income and a more cautious approach to their search. This group typically 25-32 years of age are looking for homes that require little updating. They do not have the funds to make major repairs such as updating kitchens and baths, or correcting structural issues. Their price range would be in the lower price point of the market in the community they choose. Since this is usually their first home, they do their homework and are more educated in the real estate market than ever before, due to the proliferation of information via the internet. A seller today would be smart to purchase that new carpeting and flooring as well as a fresh coat of paint in colors that appeal to this group of buyers. We, as Realtors, are happy to refer staging consultants who will offer their expertise as to what materials and colors to use for today’s young buyer. Often I hear from my clients that they would rather sell as-is since the buyer will not like the colors and materials they put in. Nothing could be further from the truth when it comes to today’s buyer! Stagers and Realtors know what colors appeal to the majority of the young people searching for a well kept home. Tired flooring and carpeting are an immediate turn off and only appeals to those looking for homes that need work. However, that group of ‘fixer-uppers’ make offers at 40-60% below market! There doesn’t seem to be any middle ground these days. We are selling homes that are in distress (foreclosures, short sales, and as-is estates) or we are selling premium well kept homes appealing to the sensibilities of today’s savvy home purchaser. The difference in sale price between these two groups of homes is astonishing, often 40-60% apart!
These young people are relying on their parents not only for financial support, but for their parent’s input when making their decision to buy their first home. You can imagine mom and dad viewing the home for the first time before an offer is made. We as parents want to protect our children from making a bad choice, especially when purchasing their child’s very first home. Therefore, any repairs or upgrades needed are many times exaggerated to make sure no mistakes are made. The roof that may cost $4,500 to replace may have a price tag of $10,000 when opinions are offered from parent to child. It is to a seller’s advantage to repair or replace any structural issues, especially basement problems, roof, furnace, electric or plumbing systems. Structural issues will kill a sale quicker than one can say “get me out of here!”
In summary, a well kept, well appointed home in today’s market will stand out from the rest of the competition. Most sellers are not willing to prepare their product, which is their home, just for someone else’s satisfaction. Remember that homes, cars, boats, or any other commodity are bought and sold with the same principal at work…the buyer determines the value, not the seller. What someone is willing to pay sets the market for any product, including homes. If you are thinking of selling, and your purchase price is in first-time buyer range, make sure it appeals to this group of young, very informed purchasers who will pay a premium price for a home that has been prepared with this first time buyer’s expectations in mind. Do your homework and the result will be a successful sale in a relatively short period of time, which is a great result in any market!
Tags: market trends, single, staging, young people