What Homebuyers Want in 2012

Throughout my years of practicing real estate law, I have found so interesting the changes in trends as to what sorts of properties are desirable at different times.  The following is a reprint of an article written by Michele Lerner of bankrate.com that discusses what is important to homebuyers in 2012.  Interesting how the priorities have changed over time.

 What Homebuyers Want in 2012

Homebuyers in 2012 have some advantages over prospective buyers in other years: low interest rates and low home prices in most markets. Those advantages don't necessarily translate into confidence about a home purchase. Buyers want to be sure they are buying a home that will at least maintain its market value, if not appreciate over the coming years. In order to feel more certain about their choice of home, today's buyers desire a property that meets the three main factors that make a residence a good value: price, condition and location.

Roxanne Gennari, a sales associate with Coldwell Banker Residential Brokerage in Princeton Junction, N.J., says local real estate markets across the country vary in their strength. "Since no one knows when the market will truly level out and values will start to climb, buyers are trying to insulate themselves from buying an overvalued home," Gennari says. "Buyers are looking for the best deal they can get. In many cases, they only want to buy if they can get a house at a certain price."

Here are six important items on homebuyers' checklists in 2012.

Buyers want homes that maintain value

"The most important thing to most buyers is the financial stability of a neighborhood," says Leisa Frye, a Realtor with Better Homes and Gardens Real Estate Metro Brokers in Roswell, Ga. "Buyers want to make sure their home won't be worth less in the future, so while they are focused on getting a good deal, they are looking for some control over not losing value in the future. They want a discount on already low prices as an insurance against potential declining value."

In Massachusetts, Gary Rogers, broker/owner of Re/Max on the Charles in Waltham, Mass., says buyers don't always find the bargains they look for.  "Lots of buyers expect rock-bottom prices, but there are no steals out there," Rogers says. "Buyers are trying to get superlow prices, but sellers who are already pricing their home at market value are not accepting those kinds of offers."

Buyers want homes in move-in condition

 Ben Coleman, broker/owner of Century 21 Hartford Properties in San Francisco, says homebuyers looking for a bargain sometimes think they want a fixer-upper -- until they see one. "Some buyers may be willing to do a little bit of cosmetic work like replacing the carpet or having something painted, but most are looking for a home in ready-to-move-in condition," Coleman says. "The preference is for a maintenance-free home, although few homes are truly maintenance-free."

Gary Rogers says the desire for ready-to-move-in homes may be a side effect of home-and-garden television programming.  "People used to love 'This Old House' and think they wanted to do their own work, but now they watch shows on HGTV like 'House Hunters,' where everyone leans toward homes that are in turnkey condition," Rogers says.

"Buyers don't want to deal with contractors," says Leisa Frye.   "And they don't want a paint or carpet allowance. I tell my sellers to do everything before they even think about putting their home on the market." 

Homebuyers want homes in handy locations

While the real estate market has changed in myriad ways over the past decade, the mantra "location, location, location" has not. Location is tied closely to value, so buyers have become even more interested in purchasing in a desirable area.

"Location has become even more important recently than it used to be, with buyers wanting to be near the city or at least near some kind of public transportation," says Gary Rogers. "We're seeing empty nesters move into Boston while 20-something and 30-something buyers are moving just outside the city in order to afford to buy."

In San Francisco, Ben Coleman says living within walking distance to amenities and to public transportation is the No. 1 priority for most buyers.  "We talk about Walk Score all the time now, which tells you how close a particular home is to things like a coffee shop, a grocery store, and a bus or subway stop," Coleman says.

A functional home is what homebuyers want

The days of homebuyers going after the biggest, best house they can afford (and sometimes can't afford) are over.  "Buying a home used to be all about size and luxury, but now it's about buying a functional home; one that is satisfactory and just large enough," says Roxanne Gennari.  "Some people still want a big home, but those that have owned one often want something smaller and not some rambling home that's expensive to heat."

Gary Rogers  says homebuyers want smaller homes for several reasons. "It's partly a reflection of the recession, that people are being more careful and conservative," Rogers says. "They are concerned about the manageability of their home, property taxes and utility bills, and they want to be able to save money even after they buy a home."  Rogers says that while empty nesters are particularly eager to downsize, almost all buyers share the same sensibility about size.  "It used to be OK to be extravagant, to look for a home that had 2,500 or 3,000 square feet when they really only needed 1,800 square feet," says Rogers. "Times have changed."

Buyers want homes with open floor plans

Buyers in Georgia look for homes built in 2000 or later, mostly because the floor plans of 21st-century homes reflect the way people live today, says Leisa Frye.  She says buyers don't particularly want formal living rooms because they don't have formal furniture. A living room frequently is converted into a study or another family room.  "Everyone wants an open kitchen and family room, or at least a direct view from the family room into the kitchen, so that the family can be together even when someone is cooking," Frye says.

Buyers in the San Francisco area prefer a great room and an open floor plan, says Ben Coleman.  "A lot of older homes in this area weren't built to be open, and have small rooms and small closets," Coleman says. "Those homes that have been renovated or can easily be changed into a more open design are extremely desirable."  Coleman says natural light is important to buyers, especially in combination with open rooms.

Buyers want a first-floor bedroom

Whether it is a master suite or a guest room or even a flexible room that can be converted into a bedroom someday, many homebuyers look for a first-floor bedroom. This trend, predicted for a decade or longer, finally seems to be coming to fruition now that baby boomers are getting older.  "The baby boom generation wants a first-floor bedroom because they are forecasting that they will stay in their home longer," says Gary Rogers. "In addition, we're seeing more extended family members moving in together, especially since people are staying healthy longer and living longer."  Leisa Frye says homebuyers in her area prefer a guest suite on the main level rather than a master suite, unless they are elderly.  "Buyers in their 30s, 40s and 50s usually want the master bedroom upstairs, so they can be near their kids," says Frye. "If there are no health issues, they want to be upstairs, but they also want a bedroom and a full bath on the main level for their elderly parents and in-laws who live with them or even just visit."