Whatever the age of today’s homebuyers, many share a key demand that passes responsibility to sellers
Whatever the age of today’s homebuyers, many share a key demand that passes responsibility to sellers.
A survey of RE/MAX agents and brokers reveals common priorities among Millennial first-time buyers, downsizing Baby Boomers, and many others; with a home that requires little or no renovation among the key demands.
"Buyers are inclined to pay more and get a home that is essentially move-in ready, rather than pay less for a home they must fix up. Sweat equity doesn't have the appeal it did 20 or 30 years ago," said Jeff LaGrange, Vice President, RE/MAX Northern Illinois Region.
That’s because today’s homebuyers are short on time and, with larger down payments required to secure a mortgage, they are also short of cash.
“If buyers have $10,000 in savings after their down payment, the prospect of a $30,000 kitchen remodeling isn't very appealing," said Richard Raap, a broker with RE/MAX City, Chicago. "Choosing a home where that work has already been done effectively allows buyers to finance the remodeling through their mortgage at a relatively low interest rate, rather than having to use their savings."
"I'm more outspoken with my sellers about the value of thoroughly preparing their home for the market," said Allyson Hoffman of RE/MAX Villager, Glenview, Ill. "If they take $25,000 and spend it in the right places, they'll get their money back and a good deal more, plus the home will sell considerably faster."
There are some things that sellers can’t control though.
As Mike Clendenning of RE/MAX Synergy, Orland Park, Ill. explains, buyers are more concerned about the sustainability of their home as an asset.
"Compared to my early years as a RE/MAX broker, today's buyers are much more focused on the long-term value of their investment and the outlook for property taxes," he said.
