Everybody likes to get a good deal -even more so when it comes to a big purchase like a new home. For buyers, a good deal is a balancing act of finding a home that meets their needs while hopefully fulfilling some of their wants, while still coming in under budget. For sellers, the hallmark of a good deal is getting a strong return on their investment to include the upgrades they may have done on the property over the years. The old saying “something is only worth what someone is willing to pay for it” holds true when it comes to home upgrades.
In today’s housing market millennials have become one of the biggest demographics currently in the market. Millennials make up to 43% of home buyers. With ages ranging from 26 to 41 years old- millennials typically aren’t willing to pay for extras that other generations might’ve appreciated. While it can be detrimental to make sweeping assumptions about such a large demographic, there are some trends that simply can’t be ignored. On a basic level, many of these buyers are looking for a back-to-basics home that meets their needs without spending a fortune. If you’re thinking about selling your home, keep this in mind when considering changes to your property: they might not pay off with a large portion of today’s home buyers.
6 Common Upgrades Millennial Buyers Won’t Pay Extra For – and 1 They Will:
- Professional Landscaping – A beautiful, nicely maintained yard is essential to helping sell a home. The boost in curb appeal is a definite plus for anyone trying to sell. Where many homeowners go wrong is investing heavily in custom landscaping. Over the top projects and special hardscapes or even fountains simply haven’t been attracting millennial buyers, who don’t want to pay for what they may consider frivolous aesthetic upgrades, and their upkeep.
- Upgraded Utilities – You may appreciate the new plumbing, but millennials aren’t willing to pay for additions that make only small differences in the function of a home. Chances are, they will not pay more for copper or PEX pipes or the brand-new junction box.
- HVAC – As long as the air blows cold, budget-conscious buyers are going to be content. Spend your money elsewhere, and let the buyer replace the system down the road if need be.
- 4. New Roof – There are few homebuyers willing to buy a home with a leaking, damaged roof. If your roof is still holding up, you might want to consider leaving it alone. Roofs are expensive, and the money you spend on that new roof- and subsequently add to the asking price of the home- may drive away millennial buyers.
- Swimming Pool – Pools are expensive, not only to install, but also to maintain. For anyone looking to buy an affordable home, a pool is a costly luxury that they’re willing to live without. With many millennials raising children or planning to raise children in the near future, safety concerns for children are just another reason pools aren’t as popular among these buyers.
- Trendy Home Décor – Beauty is in the eye of the beholder, and for many millennial homebuyers, that means simple and affordable. This may seem counter-intuitive, but adding the latest design features that will quickly go out-of-style can be a turnoff. It’s better to sell your home as it is, and let the buyers make the decision on when and how they want to make changes.
Millennials are all about saving money, so what would they be willing to pay extra for? Solar Panels. These younger buyers are conscious of their carbon footprint and are looking for environmentally friendly options for their new home. Solar panels can also help save on electricity costs, both for you before you sell, and for that new homeowner.
Market tastes and demands change over time, especially as a new demographic begins to purchase more and more homes. Whether they’re looking for their starter home or trying to find someplace bigger to fit their ever-growing family, millennials are looking for a good deal, and might not be willing to pay for some typical extras that previously added value to homes.