Tag Archives: selling price

Central Air Conditioning Commands $5,500 Premium

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Buyers are more likely to say air conditioning is essential in their new home than outdoor features like a patio or deck

Seattle, WA – July 3, 2018 (PRNewswire) Buyers are willing to spend more for the comforts of a cooler home. A new Zillow® analysis(i) finds that homes with air conditioning sold for 2.5 percent more than homes without it, which is a premium of nearly $5,500 for the typical U.S. home.

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The premium for air conditioning is highest in San Antonio, where homes with air conditioning sold for a 5.8 percent premium. Cincinnati is close behind, with a 5.7 percent premium for homes with air conditioning. Homes with air conditioning also sold for a five percent premium in Detroit, Indianapolis and Las Vegas.

Buyers put a higher value on air conditioning than outdoor home features like a patio or deck. Air conditioning was listed as a required feature by 62 percent of buyers, while a private outdoor space was deemed essential by 48 percent of buyers, according to the 2017 Zillow Group Consumer Housing Trends Report(ii).

Unusually hot summer days have become more common over the past few decades, according to the Environmental Protection Agency(iii), which may help explain why air conditioning is becoming more of a necessity in many markets. Across the country, 66.1 percent of homes that sold in the past year have air conditioning. In markets with some of the hottest climates, air conditioning was in nearly every single home that sold in the past year. It was in 99.1 percent of homes sold in Las Vegas, and 97.9 percent of homes sold in Phoenix.

“With summer temperatures hitting record highs across the country, today’s home buyer places a premium on the once-upon-a-time luxury amenity of air conditioning,” said Zillow Senior Economist Aaron Terrazas. “Individual design preferences or decorating styles might deter buyers from certain homes, but there is a strong consensus in favor of air conditioning, although in the nation’s fastest-moving markets, AC may weigh relatively low for buyers eager to find any home they can. In historically more temperate climates, some homes – especially older ones – aren’t as likely to have air conditioning. But in places where temperatures regularly reach triple digits, it’s hard to find a home without air conditioning.”

Renters put a slightly higher premium on air conditioning. The typical U.S. rental on Zillow in the last year with central air conditioning rented for 2.8 percent more than rentals in the same market that don’t have air conditioning, or about $40 per month.

This may be because renters are more limited than homeowners when it comes to adding air conditioning. They likely can’t install a central air or HVAC system for example, and window units may not be as effective at cooling an entire home.

The New York, Las Vegas and Phoenix metros – all markets with sweltering summers – had the highest rent premiums for air conditioning. While central air conditioning is prevalent throughout Las Vegas and Phoenix, it is fairly rare in the New York metro, which includes northern New Jersey and Long Island. Just 17.2 percent of New York metro rental listings advertise air conditioning, compared with 54.7 percent of on-market rentals overall.

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Zillow

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with great real estate professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow Group’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

(i) This analysis looked at homes with and without central air conditioning that were sold or listed for rent between June 1, 2017 and May 31, 2018 in the 35 largest metro areas. It controlled for variables that can affect the value of a home, including the number of bedrooms and bathrooms, square footage, age of the home and its location.

(ii) https://www.zillow.com/report/2017/buyers/wants-needs/

(iii) https://www.epa.gov/climate-indicators/climate-change-indicators-high-and-low-temperatures

Homes with Tuxedo Kitchen Cabinets and Black Front Doors Can Sell Up to $6,000 More than Expected

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For-sale listings with neutral wall colors accented by dark pops of color sell for more money, according to Zillow analysis; homes with red or brown wall colors can sell for less than expected

Seattle, WA – June 20, 2018 (PRNewswire) Painting a home in the right colors can have a significant impact on its sale price. According to a Zillow® analysis, homes with black front doors, tuxedo kitchen cabinets and periwinkle blue bathrooms sell for as much as a $6,000 premium(i).

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Zillow’s 2018 Paint Color Analysis looked at more than 135,000 photos from sold homes around the country to see how certain paint colors impacted their sale price on average, when compared to similar homes with white walls.

Homes with black or charcoal gray front doors sell for $6,271 more than expected, the highest sales premium of all the room and color combinations analyzed. Tuxedo kitchens, or kitchens where the upper and lower cabinets are painted in two different colors, sell for a $1,547 premium. White cabinets contrasted by a dark navy blue or black kitchen island were some of the most common tuxedo kitchens in top-performing listings.

Homes with cool, neutral wall colors like blue bathrooms and light taupe living rooms also sold for more than expected. However, some paint colors might actually deter buyers. Homes with more style-specific colors like brick or raspberry red kitchens sell for $2,310 less than expected. Homes with yellow exteriors also sell for less.

“For a seller, painting a front door is one the least expensive home prep projects, but also one that can have a powerful impact on a home’s sale price,” says Kerrie Kelly, Zillow home design expert. “While cool, neutral wall colors like tan and light blue are still popular, we’re seeing a notable shift in home design where pops of color – particularly in darker hues of blue and gray to even black — are becoming increasingly popular. Contrasting colors, especially in kitchens and home exteriors add interest and dimension to a room that plays very well in listing photos and videos.”

Picking the perfect paint color is one of many factors that may affect why a home sells for more money. Walls painted in neutral colors have broad appeal and may be a signal that the home is well cared for or has other desirable features. Sellers can also consult Zillow’s Owners Dashboard to see in real time how their listing is performing compared to similar ones on the market.

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Zillow Research

Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with great real estate professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow Group’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ: Z and ZG), and headquartered in Seattle.

Zillow is a registered trademark of Zillow, Inc.

(i) The Zillow Research Paint Colors analysis measured how different paint colors in various room types may impact the sale price of a home compared to its Zestimate. Zillow Research analyzed over 135,000 photos from listings around that country that sold between January 2010 and May 2018 to identify which paint colors were associated with a home selling for more or less than its Zestimate when compared to similar homes with white walls. The analysis controlled for other wall colors within each room type, square footage, home age, and zip code ZHVI in the listing month. Price effects for different room-color combinations are estimates of the average premium or discount but may not be reflective of a causal difference in value compared to white walls.

Entry-Level Homes with ‘Farmhouse Sinks,’ ‘Wainscoting,’ or ‘Exposed Beams’ Sell for Nearly 30 Percent More than Expected

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Chip and Joanna Gaines’ farmhouse-inspired design trends command highest sale premiums among entry-level homes, according to an analysis from RealEstate.com

Seattle, WA – May 2, 2018 (PRNewswire) Homebuyers – especially first-time buyers shopping for entry-level homes – can expect to pay a significant premium for houses with listings that tout popular farmhouse or craftsman-inspired features, according to a new report from RealEstate.com, a Zillow Group® brand tailored to helping first-time buyers find and budget for their first homei.

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RealEstate.com® analyzed listing descriptions from millions of entry-level homes – defined as those priced within the bottom third of the market – to see how certain home features, amenities and design styles affected sale price.

Starter homes mentioning “coffered ceilings,” “claw foot tubs” or “farmhouse sinks” in their listing descriptions saw some of the highest sale premiums of the keywords analyzed – selling for as much as 29 percent above expected values. Furthermore, homes described as “craftsman” performed better than any other design style analyzed. Even though Chip and Joanna Gaines’ ‘Fixer Upper’ TV show may be over, their farmhouse chic style has certainly had an impact on home trends, especially among entry-level homes or first-time buyers.

Energy efficient features also command high premiums among entry-level homes. Homes mentioning “solar panels” sell for as much as 40 percent more than expected, but mentions for higher-tier homes only saw a 13 percent boost.

Millennials are playing an increasingly larger role in the housing market. They make up 42 percent of all homebuyers today and 71 percent of first-time buyers, and their preferences – from location to home features – may have an increasingly notable impact on the marketii.

“In today’s competitive housing market, understanding what homes may command a premium or attract multiple offers can be hugely beneficial to buyers,” says Jeremy Wacksman, Zillow Group chief marketing officer. “However, it’s important to keep in mind which features or amenities matter most to you in a home. While a farmhouse sink or butcher block counters may appeal to many millennials and first-time buyers, not everyone may want to pay the premium those features may command.”

Buying a home can feel like a moving target. With 24 percent of homes selling over list price, determining a realistic budget – and sticking to it – can be challengingiii. To help first-time buyers, RealEstate.com allows home shoppers to search for homes based on the home’s “All-In Monthly Price,” which includes estimates for costs such as mortgage, property tax and utilities, giving them a more accurate picture of the cost of homeownership.

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About Zillow Group

Zillow Group (NASDAQ: Z) (NASDAQ: ZG) houses a portfolio of the largest real estate and home-related brands on mobile and the web, which focus on all stages of the home lifecycle: renting, buying, selling and financing. Zillow Group is committed to empowering consumers with unparalleled data, inspiration and knowledge around homes, and connecting them with great real estate professionals. The Zillow Group portfolio of consumer brands includes real estate and rental marketplaces Zillow®, Trulia®, StreetEasy®, HotPads®, Naked Apartments®, RealEstate.com and Out East®. In addition, Zillow Group provides a comprehensive suite of marketing software and technology solutions to help real estate professionals maximize business opportunities and connect with millions of consumers. The Zillow Instant Offers™ marketplace provides homeowners with the opportunity to receive offers from buyers, including Zillow in some metropolitan areas. When Zillow buys a home, it will make necessary updates and list the home for resale on the open market. The company operates a number of business brands for real estate, rental and mortgage professionals, including Mortech®, dotloop®, Bridge Interactive® and New Home Feed®. The company is headquartered in Seattle.

Zillow, Mortech, Bridge Interactive, StreetEasy, HotPads, Out East and New Home Feed are registered trademarks of Zillow, Inc. Zillow Instant Offers is a trademark of Zillow, Inc. Trulia is a registered trademark of Trulia, LLC. dotloop is a registered trademark of DotLoop, LLC. Naked Apartments is a registered trademark of Naked Apartments, LLC.

(i) This analysis measured how listing keywords associated with different home features can impact the sale price of homes in the lower-third value tier compared to the upper-third value tier, holding constant other factors. We analyzed 1.9 million home sales between 2016 and 2017 to identify which home attributes found in listing descriptions are associated with a higher sale price and less time on market. Multiple regression was used to control for the age and size of the property, the year and quarter of sale, zip-code-level ZHVI at time of list (local market cost), and MSA-level ZHVI growth compared to national growth at time of list (local market hotness).

(ii) Data from Zillow Group Consumer Housing Trends Report 2017.

(iii) According to a Zillow analysis.