It’s a great time to sell your home. Demand is strong and sales are running above the pre-pandemic pace. Inventory is still historically low, but in June it began to rise as more owners listed their homes for sale. As they join the fray and builders bring more new homes to market, buyers will enjoy greater choice, and sellers will have to step up their game in a more competitive environment. In many areas, it's still a strong seller's market. But that doesn't mean you can count on a buyer paying your desired price without making needed upgrades. Selling a home successfully requires providing what homebuyers want. That means offering in-demand home features and avoiding what homebuyers hate.

Buying a home is a multifaceted and often confusing transaction no matter how well-informed the buyer may seem. Today’s homebuyer is savvier than ever, having more information than ever before available right at their fingertips. The buyer of today has educated themselves with data and trend reports on the housing and financial markets, as well as on their own communities. They know that you are no longer the gatekeeper of information.

As a result, today’s homebuyer requires more than the standard sales pitch. They anticipate that their agent be attentive, alert, and highly attuned to their needs. In the age of social media, smartphones, and AI algorithms, there is no shortage of information on how you should remodel your home to increase its value. But you only have so much time and money, and if you’re looking to sell your home in the future, the fact remains that there’s only one opinion that matters:

What do buyers want in a home?

Dedicated Home Spaces & Storage

As one might imagine, home features today’s buyers want include dedicated spaces from which they can work, exercise, meditate, craft, and study without interruption. Homebuyer expectations have increased over time. Buyers today want their homes to look like those they see on TV. They want homes to look beautiful in photos they see online, have great curb appeal as they drive up, and look beautiful once they walk inside. From basements and built-ins to garages and attics, most buyers would like storage included in the square footage of their new homes. You should have flexibility around these items. You want them or want them, but you are willing to compromise if the property doesn’t have exactly what you want. For example, a walk-in pantry, with open shelving and cabinets, LED lighting, and an insulated door. This is a feature that 80% of first-time buyers desire according to the NAR for 2023 Homebuyers survey for other areas of the home don't forget to use strategic lighting and maximize all storage space. You may also consider multipurpose features such as a makeup and laundry-folding station. Clearing out clutter and installing plenty of wall shelves, cabinets, and hooks is a great place to start. Outdoor kitchens can include everything from countertops, a bar, cabinets, a sink, standard kitchen appliances, and sometimes even a flat-screen TV. According to a recent Home Light survey, the value of an outdoor kitchen has increased. 

What is a home-buying need?

The “need” items on your checklist are more forgiving than the “must-have” items, albeit only slightly less. These are items that you need to have, like location, parking, schooling, etc. We go into more details below but suffice it to say, these items fall high on your priority list when shopping for a home.

Updated Kitchens & Baths

What do new homebuyers want? The answer is simple: updated kitchens and bathrooms. Millennials and first-time homebuyers have made their intentions known. Updated kitchens and baths are a must. According to a recent survey conducted by Metropolitan Regional Information Systems Inc., 81 percent of respondents recognized updated kitchens and bathrooms as the most important feature when considering whether to purchase a home. Eat-ins are especially desirable for second-time homeowners and families with children. This is because eat-in kitchens provide space not just for eating, but also for doing homework, crafting, and more. If your budget warrants it, we highly recommend upgrading your kitchen and bathrooms, both kitchen and bathroom remodels become synonymous with some of the highest ROI projects. What’s more, you don’t need to break the bank to attract first-time homebuyers. 

Open Floor Plans

What are homebuyers looking for, if not for more living space? The whole idea of moving into a first home is to upgrade from the previous living arrangements, after all. Outside of modernized kitchens and baths, first-time homebuyers have expressed their desire for open floor plans. Not surprisingly, 59% of first-time homebuyers were expected to prioritize less-confined homes or those that facilitate functionality. Sellers should consider their current floor plan and determine whether it would be worth knocking down a wall or two before putting the property up for sale. This wall-free arrangement is still what many buyers want in their home’s main living areas. This is because there are several benefits to having an open arrangement, including better use of square footage, and better lighting and it makes for easier entertainment for parties and get-togethers. If you want to create some level of separation between spaces for privacy with an open floor plan, you can do this with strategic use of furniture and half-screens. If possible, I recommend eliminating any walls that separate the kitchen from the living room. People of all generations, not only millennials, have come to favor the open kitchen concept, as it allows for a more conversational flow to the property.

Energy Efficient Home

Agents say homebuyers are increasingly prioritizing energy efficiency in their home search. Solar panels were among the energy-efficient items highlighted in this home Light survey, with 41% of agents reporting that they find it helpful to promote these energy-efficient features in their listings. Unlike limiting the amount of maintenance, a property will require once it is purchased, energy efficiency has caught the attention of first-time homebuyers for the sole purpose of saving money. However, energy efficiency has the added benefit of compounding savings over time. Sellers are advised to include as many energy-efficient upgrades in their homes as possible if they want to attract the interest of first-time buyers. However, today’s buyers will be more interested in the amount of money they will save on energy bills over the course of their living in the home. Insulated properly, a home can save owners a lot on their energy bills. More homeowners understand the importance of ‘decarbonizing’ everything from products to transportation, and especially their homes. As such, prospective home buyers are looking for homes equipped with electric induction cooktops as well as geothermal heating and efficient HVAC systems. 

Easy access to WI-FI

Want to know what homebuyers want today? Connectivity. No other generation is more aware of what today’s technology is capable of than millennials. That said, it is safe to assume that their inherent dependency on technology will affect the way millennials buy homes. In fact, nearly a quarter of all first-time buyers (20%) are expected to place a priority on homes with strong cell phone service and Internet connectivity. With the ability to work pretty much anywhere, many have relocated from high-octane metropolises to smaller cities, suburbs, and even rural areas. Of course, working remotely from your rural homestead, coastal vacation home or house in the suburbs is only possible with high-speed internet. Unfortunately, too many first-time home buyers have entered escrow without checking the signal or running a speed test. In 2022, this year’s buyers have learned from the mistakes of last year’s buyers and are prioritizing high-speed internet when house hunting. Not surprisingly, millennials are the first generation of buyers that fully expect homes to meet their technological demands. Strong Internet connections and cell phone service are no longer a luxury but rather a necessity. The sooner sellers realize that the better their chances of attracting a buyer are. Any home that neglects to address the issue is destined to grow stable on the market.

Laundry Rooms

Often overlooked but never unappreciated, laundry rooms have found themselves at the top of almost everyone’s priorities list. According to a Kiplinger article, in fact, 91.0% of buyers want laundry rooms in their new homes, and first-time buyers are no exception. Perhaps it has to do with needing more space, or maybe it’s because they are tired of using shared, communal laundry rooms at their previous apartment complexes, but first-time buyers have expressed the need to have a laundry room.

More than anything else, homeowners want a dedicated laundry room where they can hide the dirty clothes and stack the clean ones until they get put away. A separate laundry room tops the National Association of Home Builders (NAHB) list of most-wanted home features by buyers. "Having a separate room [to use for things such as folding or ironing clothes] helps to keep the mess out of your living space. Potential buyers will see it as a huge benefit.

Exterior Lighting

Exterior lighting is a great way to add both curb appeal and functional lighting. On the one hand, a properly lit home is much more attractive and welcoming to anyone passing by or stopping in for a visit. On the other hand, exterior lighting is necessary for anyone looking to host outdoor activities. Additionally, and perhaps most importantly, exterior lighting is an added safety feature. A few minor installments can make a home safer for its occupants. Whether it’s barbecuing or hosting a game night, exterior lighting can make all the difference, and homebuyers are starting to take notice. For a relatively low cost of entry, exterior lighting can be installed for as little as $50.00 a fixture. Of course, the cost can increase with more luxurious fixtures, but the point remains the same: the project can be done for an affordable price.

Garage Storage Space

Once again, most first-time homebuyers are looking to replace their current living situation with more spacious accommodations. Sometimes the whole reason someone wants to buy a home is for more space, which would explain why about 85.0% of today’s buyers demand garage storage space. As any homeowner will tell you, it’s easy to accumulate too much stuff. Homeowners have a knack for abundance, and garage storage space is a must. More specifically, however, is the value of efficiency. Garage storage space allows homeowners to buy the things they need/want without taking up too much space in the living area. On top of that, garage storage is usually more accessible than an attic or shed, which allows homeowners to store things over the course of a year without forgetting where they put them. The cost of adding garage storage can vary dramatically, from cheap DIY shelves to professionally installed workbenches and cabinets. Regardless of the price, however, the effort will go a long way in attracting more buyers.

The rest of 2023 will certainly draw the interest of first-time homebuyers on a massive scale, which leaves sellers having to answer one important question: What features are most important to homebuyers? What do homebuyers want, and what can today’s sellers do to accommodate their customers? Outside of offering a listing in a relatively competitive market, sellers should note the amenities listed above. Not only will today’s best new home features help sellers find buyers, but they should simultaneously award their owners with higher returns. If, for nothing else, buyers in today’s market appear ready and willing to pay for the features they want, it’s up to the sellers to make sure they deliver.