What a Buyer Wants, What a Buyer Needs - Part 1

In the recent 2007 Profile of Buyers' Home Feature Preferences by the National Association of REALTORS® findings indicated that central air conditioning is the #1 feature that homeowners desire when purchasing a new home. Not really a surprise though...in our society today isn't that almost like saying you desire indoor plumbing? I would say it has become more of a necessity.

Granted there are homes being resold that do not have air conditioning, and those that only have window units, but I find it interesting that in the same report central air conditioning was not something for which Buyers were willing to pay a premium. Doesn't that make it an expectation? And in our local market, it's a safe bet to say that Buyers would also include central heat in this same category as we have both hot and cold seasons.

Investors please pay attention here...if you are looking for a good return and a way to increase your profits, you should look at homes WITHOUT central heat/air that can be renovated to include it. You'll have a great bargaining chip to negotiate with in your purchase, and the #1 most desirable feature when you decide to resell!! Easy money!

Sellers please pay attention here...if you own a home without central heat/air, you should add it. When you need to sell, many Buyers will not even look at your home if it does not have this feature, and/or if they do look, they will want to deduct the cost of adding central heat/air (plus some) from your list price. It will impact you negatively either way.

Case in point, I've had two Buyers recently looking at older homes in areas and price ranges where many of their options did not include central heat/air. When setting up their MLS searches, one did not even want to see options without central heat/air, and the other was open to renovation but when making offers they reduced their offer price significantly with the addition of central heat/air in mind.

More on this topic (regarding other features) to come...