Tricked-out Backyards Can Help Homes Sell For $10,000 More

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, WA – 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 

FeaturePrice premium
Outdoor TV3.1 %
Soapstone3.0 %
Matte black2.9 %
Outdoor shower2.6 %
Beverage center2.4 %
Bluestone (patio)2.3 %
She shed2.0 %
Pizza oven1.9 %
Quartz1.7 %
Outdoor kitchen1.7 %

Top 10 features that sell a home faster than expected

FeatureDays faster
Rounded corners6.2
Plant ledge5.6
Frameless shower4.7
Terrazzo3.7
Picket fence3.2
Modern farmhouse3.1
Turf3.0
Fenced yard2.8
Energy Star2.6
Saltwater pool2.6

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.

SOURCE Zillow Group

NAR Highlights Dire Lack of Housing Affordability and Inventory in Congressional Testimony

Dr. Jessica Lautz discusses NAR research, confirms the housing market continues to have a deficit in housing inventory compared to housing demand.

Washington, D.C. – March 20, 2024 (nar.realtor) Dr. Jessica Lautz, deputy chief economist and vice president of research at the National Association of REALTORS®, today testified(link is external) before the House Committee on Financial Services Subcommittee on Housing and Insurance.

During the hearing, “The Characteristics and Challenges of Today’s Homebuyers,” Lautz shared NAR’s existing-home sales research with members of Congress. She emphasized that in 2023, the annual number of existing-home sales was at the lowest recorded since 1995. While January 2024 shows an increase in home sales, this follows a retraction in the housing market due to limited inventory and an erosion in housing affordability.

Lautz pointed to NAR’s research, confirming that bidding wars for homes are more frequent due to the lack of housing inventory. She outlined research from the association showing that in January 2024, the typical seller received 2.7 offers, and 16% of homes sold were over the list price. Further, she explained that home prices continue to rise because of the lack of inventory, pushing more potential buyers out of the market.

“First-time home buyers continue to struggle to enter the housing market lacking the housing equity that boosts the purchasing power of repeat buyers,” Lautz testified. “First-time buyers accounted for 32% of primary-residence buyers last year, which remains well under the historical norm of 40%. While there is a smaller share of first-time buyers, they are also older than they have been historically. In the 1980s, the typical first-time buyer was in their late 20s; however, they are now in their mid 30s. Among first-time buyers who can enter the market successfully are those with household incomes of nearly $25,000 more than those of the year prior.”

The National Association of REALTORS® and its 1.5 million members work tirelessly to help all citizens achieve homeownership. Regardless of background, owning a home remains a pivotal cornerstone to attaining the American Dream and is a means of spurring generational wealth within families. Due to the lack of affordability, coupled with low inventory, first-time home buyers are not afforded the benefits that come with homeownership.

“The wealth held by homeowners is 40 times that of a renter,” Lautz said. “Housing wealth can be used to help children attend college, pay for remodeling costs on the home, in retirement or even help their own children achieve the dream of homeownership. Homeownership also comes with a number of social benefits, such as educational achievement, civic participation, health benefits, property maintenance and improvement.”

Along with NAR, representatives from the Mortgage Bankers Association and the National Fair Housing Alliance were present for the hearing.

About the National Association of REALTORS®

The National Association of REALTORS® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.

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A Week In Real Estate News – Week Ending March 22nd

Everyday AgencyLogic publishes real estate news and press releases from around the country.

Here are this weeks press releases:

Redfin Reports New Listings Rose to the Highest Level in 17 Months in February

Nearly 75 Percent of First-time Homebuyers are Optimistic about the Current Housing Market

Prices Rose 0.6% in February, Marking Return to Pre-Pandemic Norm

U.S. Foreclosure Activity Continues To See An Annual Increase

Correcting the Record: NAR Does Not Set Commissions

California Home Sales Remain Resilient in February Despite Rising Mortgage Interest Rates

RE/MAX National Housing Report For February 2024

Higher Mortgage Rate Forecast Leads to Decline in 2024 Home Sales Expectations

NAR Responds to President Joe Biden’s Remarks on Lowering Housing Costs for American Families

Home Flipping Plummets Across U.S. In 2023 As Profits Slump Again

Pennsylvania Median Home Sales Price Up in February