What Home Buyers Really Want

Every year,  the National Association of Home Builders publishes a 300+ page book on the above headlined topic. It includes such topics as choosing a community; trade-offs buyers are willing to make; kitchens and baths; home type, price and size and the most wanted—and unwanted-features. The book breaks down these topics and others based upon geographic location and buyer demographics. 

This past Saturday, Questa Locke, a 20 year realtor specializing in new construction and her friend, a luxury home specialist, together we visited five of the luxury Parade of Homes entrees for Anchorage.  Many of the entrees followed the latest trends.  One item that was consistent in all the homes was buyers want open layouts, especially to the kitchen.  Although the better designed homes are not the first thing you see when entering but rather to the side.  In other words, the entry leads to the primary living area.  The preferred location for the W/D has returned to the first floor.  Only 7% of buyers prefer the laundry room to be on the second or higher floor. That’s a significant change from the traditional two-story home with 3-4 bedrooms up plus the laundry room. This first floor laundry is now particularly attractive next to a mudroom and the garage.  A recent potential buyer also requested a drop-off area leading into the butler’s pantry for convenience of the weekly Costco run.  I didn’t think too much of the idea until I realized the utility area, mudroom, laundry room all at the back of the house makes a lot of sense for Alaska!

The outdoor patio is preferred by 86% of buyers.  What’s popular in Alaska is a roof over the patio and trex is now being replaced by concrete which is less expensive and requires less maintenance. Still, its hard for me to wrap my arms around the love of the deck in Alaska given our weather and cold temperatures.  I would prefer a second fireplace!   But then, I live in a more interior landscape when it comes to relaxation and recreation with a love for poetry rather than fireweed. Garage storage is preferred by 81% of buyers which means nationally the three+ car garage is ‘it’ with 12%. Guess the researchers didn’t know about the 4-6 car garage now so popular in Alaska.

Remember the powder room on the first floor of the popular two-story home built in the late l990’s in South Anchorage neighborhoods?  Today, that powder room has turned into a  full bath for aging boomers and multi-generational families.  Buyers also prefer a front porch although in Alaska its more of a design feature than an outdoor seating area popular in the south.  A walk-in pantry is also a requested feature by 80% and becomes a butler’s pantry in the luxury home market.  What’s interesting to note is the demand for the return of the kitchen table space for eating in contrast to the large island which now has no appliances and is simply an after work/school family gathering place. 

When it comes to choosing a community, buyers prefer the suburbs, especially Gen Z and Boomers and the typical buyer is willing to commute 11.3 miles one-way.  Guess they forgot to ask Alaska about the 57,000 cars that drive the Glenn every day or the more desirable commute to Girdwood.   Over 1/3 of buyers still do not want an HOA, although I beg to differ because an HOA over a ten year period of time will protect a home’s value from a delinquent neighbor.

Finally, buyers will accept smaller lots to achieve affordability and are willing to shrink the home office but not the kitchen.  Buyers are also willing to trade off space for amenities which can be added at a later date.  However, any amenity should be included in the base price which means builders need to have a price list prepared for upgrades, particularly when it comes to kitchen appliances, lighting and flooring.

This weekend, visit the Mat-Su Fall Parade of Homes, and see how many of these features are included in their designs. I’ll see you there this Saturday.