Tricked-out backyards can help homes sell for $10,000 more

Rhea-AI Summary

Zillow's latest research reveals that homes with trendy features like outdoor TVs and plant ledges can sell faster and for higher prices. New and modern amenities such as soapstone countertops and beverage centers are becoming more desirable, while older features like quartz counters are losing appeal. The study highlights the impact of specific home features on sale prices and speed, emphasizing the importance of keeping homes up-to-date to attract buyers.

Positive

• Homes with outdoor TVs can sell for 3.1% more than expected, the highest premium among 359 analyzed features.
• Trendy features like plant ledges and rounded corners can help homes sell up to six days faster.
• New and modern amenities like soapstone countertops and beverage centers are preferred over older options like quartz counters and wine fridges.
• Certain home features can signal a home is up-to-date and attractive, leading to faster sales and higher prices.
• Contemporary design elements like matte black finishes and white oak flooring contribute to higher sale premiums.
• Installing trendy features solely for resale purposes may not yield significant returns.

Negative

• Installing individual trendy features solely for resale purposes may not yield significant returns.
• Certain outdated features like laminate or tile countertops can lower a home's sale price by at least 1%.
• While new and modern amenities are preferred, older features like quartz counters and wine fridges are losing appeal.
• Installing trendy features solely for resale purposes may not deliver significant returns.

Real Estate Market Analyst

The recent findings by Zillow suggest a shift in consumer preferences, with an emphasis on outdoor living spaces and modern amenities. This trend reflects a broader societal change where homeowners value the integration of indoor and outdoor living, likely a residual effect of lifestyle adaptations from the pandemic era. The data indicating that homes with features like outdoor TVs and showers can sell for up to 3.1% more than expected highlights the importance of these amenities in current real estate valuations.

From a market perspective, this insight provides actionable intelligence for sellers and real estate agents. It suggests that listings should strategically emphasize these features to potentially increase the property's appeal and value. However, it's important to note that while these features may contribute to higher sale prices, the cost of installing such amenities solely for resale purposes may not always justify the investment. Sellers should consider the return on investment and the target market's demand before undertaking significant renovations.

Home Renovation Expert

The evolution of interior design trends, as indicated by Zillow's research, underscores the dynamic nature of homebuyer preferences. The popularity of matte black finishes, white oak flooring and soapstone countertops reflects a move towards sleek, contemporary aesthetics in living spaces. These features not only enhance the visual appeal of a property but also suggest a turnkey home, which can be particularly enticing for first-time homebuyers who may not want to invest in immediate renovations.

It's important for homeowners to understand the distinction between trend-driven renovations and timeless upgrades. While certain features may be in vogue today, they could become outdated quickly. Homeowners should balance personal taste with broad market appeal, especially if they plan to sell in the near future. Moreover, the emphasis on outdoor amenities aligns with a growing environmental consciousness and a desire for personal wellness spaces, which could have lasting appeal beyond current trends.

Consumer Behavior Specialist

The influence of social media platforms like TikTok on homebuying trends is a testament to the power of viral content in shaping consumer behavior. The appeal of certain home features to younger, first-time buyers indicates a shift in marketing strategies for the real estate industry. Highlighting features such as plant ledges and statement terrazzo tiles can tap into the aspirational lifestyle promoted through social media, potentially shortening the time a home spends on the market.

The data suggests that sellers can leverage these trends to their advantage by aligning their property's presentation with the preferences of a digitally-engaged audience. However, it is essential for sellers to remain authentic and not overstate the presence or condition of such features, as this could lead to disappointment and distrust from potential buyers. Transparency in listings, while emphasizing sought-after features, can build trust and attract serious buyers more effectively.

Zillow finds homes featuring TikTok trends, like plant ledges and rounded corners, sell nearly a week faster

• New Zillow research finds outdoor TVs, outdoor showers and outdoor kitchens can help homes sell for as much as 3.1% more than expected.
• Fresh features are replacing old favorites. Soapstone countertops and beverage centers are outperforming quartz counters and wine fridges.
• Viral home features that appeal to younger first-time buyers can help a home sell up to six days faster than expected. 

SEATTLE, March 21, 2024 /PRNewswire/ -- Home buyers are willing to pay more for a backyard decked out with all the bells and whistles. New Zillow® research finds homes equipped with an outdoor TV command 3.1% more than expected — or $10,749 on a typical U.S. home. That's the highest sale price premium of all 359 features Zillow analyzed across nearly 1 million home sales in 2023. 

Homes with other desirable backyard features such as an outdoor shower, pizza oven and bluestone patio also fetch higher-than-expected sale prices when those features are mentioned in a listing description. Six of the top 10 features that help homes sell for more are outdoor features, signaling that the pandemic-era demand for functional outdoor space remains. 

Certain trendy or viral features can attract more competing buyers, contributing to a speedier sale. Rounded corners, popular in contemporary furniture design and now architecture (hello, curvy kitchens), can help a home sell six days faster than similar homes. #Plantparents snap up homes that mention a plant ledge in their listing description more than five days faster than expected. Statement terrazzo tile can help a home stand out and sell nearly four days faster. 

"When certain home features or design styles are highlighted in a listing description, they serve as a signal to a buyer that a home is appealing and up-to-date. As a result, those features can help a home sell faster and for more money," said Amanda Pendleton, Zillow home trends expert. "On the flip side, certain features can suggest a home is dated and needs work, and can lower a home's sale price. Features like laminate or tile countertops can hurt a home's value by at least 1% when mentioned in a listing description."

In with the new

Modern features that signal a home is either brand new or recently remodeled contribute to higher sale premiums. The current look of contemporary homes often incorporates matte black finishes and white oak flooring, which can boost a home's sale price by 2.9% and 1.6% respectively. 

Soapstone now outperforms quartz as the countertop material of choice, contributing to a sale premium of 3% versus 1.7%. And a beverage center is the new wine fridge. Beverage centers can help a home fetch a 2.4% sale premium, compared to 0.9% for wine fridges. These undercounter refrigerators offer different temperature settings for different types of beverages, not only wine.  

If you've got it, flaunt it

Homeowners looking to sell for top dollar this spring will want to highlight these home features if they've got them. However, installing an outdoor shower or any of these individual features solely for resale may not deliver these kinds of returns. Instead, these keywords should be viewed as signals about everything else a home has going for it. For instance, if a home has an outdoor shower, it probably has a pool or is close to the beach, which is what buyers are ultimately willing to pay more for.  

Sellers should also keep in mind that features that help homes sell in one neighborhood may not resonate with buyers somewhere else. An experienced local real estate agent with extensive market knowledge can help sellers highlight the right features, and will likely have other creative pricing and marketing strategies to help maximize a home's sale price.

Affordability curbs features' price premiums

Price premiums for individual features were lower across the board in 2023 compared to previous years, as buyers' budgets were constrained by higher mortgage rates. Affordability remains the biggest hurdle for home buyers, particularly first-time buyers, who must prioritize "need to have" features over "nice to have" features.

Home shoppers will face similar affordability challenges this spring home shopping season, along with more competition for homes that have sought-after features. Affordability calculators can help buyers set a budget, and buyers can then search for homes by monthly cost on Zillow instead of by purchase price. With attractive homes flying off the market in only 17 days, prospective buyers should get pre-qualified for a mortgage first, so they can act quickly when the right home comes along — with or without an outdoor TV.  

Top 10 features that sell a home for more than expected 

Feature	Price premium
Outdoor TV	3.1 %
Soapstone	3.0 %
Matte black	2.9 %
Outdoor shower	2.6 %
Beverage center	2.4 %
Bluestone (patio)	2.3 %
She shed	2.0 %
Pizza oven	1.9 %
Quartz	1.7 %
Outdoor kitchen	1.7 %

Top 10 features that sell a home faster than expected

Feature	Days faster
Rounded corners	6.2
Plant ledge	5.6
Frameless shower	4.7
Terrazzo	3.7
Picket fence	3.2
Modern farmhouse	3.1
Turf	3.0
Fenced yard	2.8
Energy Star	2.6
Saltwater pool	2.6

About Zillow Group

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences. 

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®. 

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.

 

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SOURCE Zillow Group

How much more can homes with outdoor TVs sell for compared to expected prices?

Homes with outdoor TVs can sell for 3.1% more than expected.

What are some trendy features that can help homes sell faster?

Trendy features like plant ledges and rounded corners can help homes sell up to six days faster.

Which modern amenities are becoming more desirable according to the research?

New and modern amenities like soapstone countertops and beverage centers are preferred over older options like quartz counters and wine fridges.

What are some negative aspects highlighted in the research regarding home features?

Certain outdated features like laminate or tile countertops can lower a home's sale price by at least 1%.

How do contemporary design elements like matte black finishes and white oak flooring impact sale prices?

Contemporary design elements like matte black finishes and white oak flooring contribute to higher sale premiums.