New Buyer Demands Taking Over the Industry #AREFchat

Media outlets have been suggesting that today’s home shoppers are forgoing mini mansions in favor of smaller homes of a more manageable size, but still want the luxury features. Considering mini mansions were some of the most popular products on the market for years, it seems a little strange that buyer taste could change so drastically. My theory was that today’s real estate market is full of first time home buyers, thanks to the $8,000 tax credit, which is why modest homes are selling as opposed to the fact that preferences have changed. People still want bigger, more impressive homes, but these move-up buyers are just not currently represented. So, in today’s #AREFchat discussion, I asked real estate agents where the truth lies.

To my surprise, the real estate agents agreed with the media outlets. According to @Taniamacleod and @TheKenCook, there are many repeat buyers in the market and they are looking for smaller homes. The current state of the economy has made people really evaluate their current living situation to see whether or not it is economically practical. As a result, non-energy efficient high ceilings and wasted space have become less and less important.

Of course, just because they want to downsize does not mean they want to sacrifice luxury. Buyers want to see homes with energy-efficient features, spacious gourmet kitchens, hardwood floors, intricate molding, trey ceilings, whirlpool garden tubs and more. Tania Macleod is even working with this exact buyer right now – “I know I’m looking for a nice $1 million price range and buyers do not want three levels with wasted space and huge ceilings. They want a ranch home.”

It’s also important to note that buyers can upgrade in ways more than just the interiors. Especially in today’s market with the unbelievably low prices, buyers can purchase a smaller home in a community with resort-style amenities or a more sought-after location and still remain under budget.

Today’s buyers have become smarter about their decisions and what exactly they are looking for in a new home. The only question that remains is will builders start catering to these new demands?

#AREFchat takes place every Wednesday on Twitter at 10 a.m. EST. Join us next week and every week. If you have a suggestion for a topic, let us know.