SEATTLE, March 4, 2020 /PRNewswire/ -- From
television trend to real estate spend – homes with shiplap,
barndoors and farmhouse sinks sell for more and sell faster than
expected.
New Zillow research suggests buyers aren't over the farmhouse
fad and they're willing to pay a significant premium for features
popularized by reality renovation TV shows.
Modern farmhouse style, when mentioned in a for-sale listing,
was associated with a 10.3% sale premium, the largest price premium
of any home feature or style Zillow looked at. That adds up to
about $25,000 on a typical American
home.
"Some design trends look great in a photograph, but don't
reflect the way most Americans live," said Amanda Pendleton, Zillow Lifestyle Expert. "The
modern farmhouse trend seems to be enduring because of its
livability. It has a more casual, rustic aesthetic that is meant to
be lived in; nothing is precious and the more wear and patina, the
better, which makes it so appealing to buyers with children or
pets."
High-end, custom features earned significant sale premiums, too.
Homes with waterfall countertops, which fall vertically down the
side of a kitchen island or peninsula, earned 9.4% more than the
expected sale price. Homes with Moroccan tile, characterized
by high-contrast geometric patterns, commanded a 7.3% sale
premium.
"This analysis didn't look at return on investment, so don't
rush out to install a waterfall countertop in your kitchen and
assume you'll earn your money back in a sale," said Zillow
economist Jeff Tucker. "However, if
you have these features in your home, make sure to flaunt them in
your listing description during the competitive spring home
shopping season. We can't prove these features directly cause the
price premiums we found, but the positive correlation is a clear
sign that today's home shoppers associate these features with
high-quality homes."
Keywords associated with smart homes, such as "smart sprinkler
system" and "smart light," and keywords associated with
sustainability and energy-efficiency, such as "drought-resistant"
and "double-pane windows," contributed to a faster than expected
sale. Homes with rattan elements, a hot design trend, sold
nearly 13 days faster than expected.
There are many factors that contribute to a home's final sale
price, including when a home is listed for sale. In this analysis,
Zillow looked at more than 170 features or design elements that
were mentioned in the listing descriptions of millions of homes
sold in 2018 and 2019.
This year, Zillow used a new methodology1 that
considered a home's pre-listing Zestimate, Zillow's best estimate
of a home's value, along with the home's sale price and number of
days it was on the market. Listings with each feature were
compared with listings of homes without them, controlling for size,
age and location of the homes, the time of year listed, and the
presence of any of the other keywords analyzed here.
Top 10 Features that Contributed to Homes Selling for More
Than Expected
Feature
|
Price
Premium
|
Modern
farmhouse
|
10.3%
|
Waterfall
countertop
|
9.4%
|
Moroccan
tile
|
7.3%
|
Craftsman
|
6.0%
|
Exposed
brick
|
6.0%
|
Free-standing
bath/tub
|
5.5%
|
Quartz
|
5.5%
|
Dual
range/fuel
|
5.3%
|
Metal roof
|
5.1%
|
pet/dog
spa/wash/shower
|
5.1%
|
Top 10 Features that Contributed to a Faster than Expected
Sale
Feature
|
Days on Market
Faster than Expected
|
Smart sprinkler
system
|
15.1
|
Rattan
|
12.8
|
Drought-resistant
|
12.0
|
Mid-century
|
10.5
|
Board and
batten
|
8.7
|
Carrara
(marble)
|
8.1
|
Double-pane
window
|
8.0
|
Pergola
|
7.9
|
Butcher
block
|
7.4
|
Smart
light
|
7.3
|
About Zillow
Zillow® is transforming how people buy,
sell, rent and finance homes by creating seamless real estate
transactions for today's on-demand consumer. Zillow is the leading
real estate and rental marketplace and a trusted source for data,
inspiration and knowledge among both consumers and real estate
professionals.
Zillow's proprietary data, technology and industry partnerships
put Zillow at nearly every major point of the home shopping
experience, helping consumers search for and get into their new
home faster. Zillow now offers a fully integrated home shopping
experience that includes access to for sale and rental listings,
Zillow Offers®, which provides a new, hassle-free way to buy and
sell eligible homes directly through Zillow; and Zillow Home Loans,
Zillow's affiliated lender that provides an easy way to receive
mortgage pre-approvals and financing. Zillow Premier Agent
instantly connects buyers and sellers with its network of real
estate professionals to help guide them through the home shopping
process. For renters, Zillow's innovations are streamlining the way
people search, tour, apply and pay rent for leased
properties.
In addition to Zillow.com, Zillow operates the most popular
suite of mobile real estate apps, with more than two dozen apps
across all major platforms. Launched in 2006, Zillow is owned and
operated by Zillow Group, Inc. (NASDAQ:Z and ZG) and headquartered
in Seattle.
Zillow and Zillow Offers are registered trademarks of Zillow,
Inc.
1 Methodology: Zillow analyzed closed
transactions in the United States
in 2018 and 2019 where Zillow could match the sale to the listing
description and the home's Zestimate in the month before listing.
The listing descriptions were checked for whether they mentioned
each feature in the analysis, and then log-linear regression was
used to estimate a percentage price difference in one analysis, and
days on market difference in the other, as a function of: each
home's pre-listing Zestimate, quadratics of age and square footage,
local ZIP and MSA-level home value trends, the time of year listed,
and the presence of each of these 170+ features in their listing
descriptions
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SOURCE Zillow