New Trend: Existing Homes over New Construction

 

Surprising Shift Favors Homeowners: Buyers Now Prefer Existing Homes

In April, the National Association of Home Builders (NAHB) posted an article, Home Buyers’ Preferences Shift Towards New Construction, which reported:

“60% of people who were looking to buy a home in 2020 said they'd prefer new construction to an existing home.”

However, it seems buyers are now shifting their preferences back to existing homes.

The latest Consumer Confidence Survey reveals the percentage of Americans planning to buy a home in the next six months is virtually the same as it was back in March. However, the percentage that plan to buy a newly constructed home is lower for that same period.

NAHB confirms this sentiment in their latest Housing Trends Report. The organization explains that existing homes are now the top preference among today’s buyers. Here’s a breakdown of those findings:

Why the shift?

There are several reasons why buyer preference is shifting. Here are two that impact purchasers looking to move in now:

• The process may move faster. Builders may not be able to guarantee when the house will be complete and ready for move-in due to supply chain challenges with materials like lumber and appliances. If you buy an existing home, not only is it ready, it also likely has a refrigerator, range, and other necessary home appliances already.
• There are no unexpected costs during the buying process. With the price of land, labor, and lumber being so volatile, many builders are including an escalation clause in the price negotiation to cover rising expenses. With an existing home, the final price you will pay is negotiated upfront.

Bottom Line

If you’re a homeowner looking to sell, your house is more attractive to a greater number of buyers as compared to earlier in the year. This might be the time for us to connect to discuss the possibility.

Why Stage Your Home?

Yes, staging may cost a bit and be inconvenient if you are still living in your property, but the return on investment is worth it! According to NAR (National Association of Realtors), staged homes sell for 17% more on average than those that are not staged. 95% will sell 87% faster than unstaged homes. All impressive statistics that result in more money for you, the seller.

What is staging? It is putting that special touch on the house, giving it the appeal it needs to bring in the right buyer and create the best first impression possible.

First, you need to look at your house the way a buyer would. Start with the front since buyers may not even get out of the car if it doesn't appeal to them. This means power washing, sparkling clean windows (remove and store the screens), paint touch up, spruce up the garden, add a new welcome mat, potted flowers and perhaps some chairs to the porch.

Inside, everything must be clean, clean, clean. You should declutter and take away any personal items, such as photos, religious decoration or extreme artwork. Closets should have plenty of room to show that there is no shortage of storage space. Kitchens should have few, if any, appliances on the counters. Bathrooms only have clean, fluffy towels and new soaps. Try for gender neutral when possible and corral any toys in attractive containers. Make sure each room has a purpose, whether it may be an office, a guest room, or perhaps a media room, you are suggesting a lifestyle. If you are living with a pet, make sure all toys and food are put away and that there is no animal smell anywhere.

Don't forget the patio or backyard. Create a conversation area using chairs, or a cozy place for morning coffee with a small bistro set.

As a full service agent, I not only help with pricing and marketing, but I can stage the home using some of the sellers' items and augmenting with any needed furniture and decor. I also arrange for inspections, suggest updates such as painting, floor redos or room upgrades. Take a look at some of the before and after shots from a recent listing. This home sold in 6 days for well over asking price!
Contact me for more help or with questions about selling a property.

Guest Room Before

Guest Room After

Living Room Before

Living Room After