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    Friday, April 19, 2024

    Solar panels, Craftsman design command premiums in entry level homes

    A wide variety of home features can help entry level homes bring a higher sales price, according to an analysis by the real estate site Zillow. Solar panels and Craftsman style design were most likely to boost offers for lower priced homes, but didn't have as much an effect on properties with higher prices.

    A Zillow brand site, RealEstate.com, looked at 1.9 million listings for homes sold between 2016 and 2017. The analysis sought to determine whether certain features were associated with a higher sales price and reduced time on the market. It also compared how a home attribute would affect a listing in an entry level home—described as a property in the lower third of the market—and how it would affect a "top tier" property priced in the upper third of the market.

    Buyers of entry level homes were most likely to pay a premium for solar panels, with this feature resulting in a sales price 40 percent greater than expected. Solar panels had less of an effect on the most expensive homes, increasing the price just 13 percent more than expected.

    Homes described as having a Craftsman style sold at a 34 percent premium among entry level properties and a 20 percent premium among top tier homes. This style, which was first introduced in the early 20th century and has been enjoying a recent revival, includes features such as gabled roofs, a large front porch, interior columns, and hand-designed stone or wooden features.

    "In today's competitive housing market, understanding what homes may command a premium or attract multiple offers can be hugely beneficial to buyers," said Jeremy Wacksman, chief marketing officer of the Zillow Group. "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."

    Other popular features in entry level homes included coffered ceilings and clawfoot tubs, which were each associated with a 29 percent price increase; a mid-century design or in-law apartment, which each resulted in a sales price 28 percent higher than expected; and outdoor lighting, exposed beams, a farmhouse sink, or wainscotting, each resulting in a 26 percent premium.

    A butcher block countertop was the feature least likely to enhance the price of an entry level home. However, it still resulted in a 20 percent premium.

    Among the most expensive homes, outdoor features were most likely to result in a home selling for a greater than expected price. Outdoor kitchens were associated with a 28 percent price premium, while properties with an outdoor fireplace or fire pit had a 24 percent premium. A heated floor was also a popular option, resulting in a sales price 25 percent higher than expected.

    Gas furnaces were the only feature associated with a detrimental effect on the price. Top tier homes with this feature sold for 5 percent less than expected.

    Hardwood floors and a Jacuzzi tub also had a minimal effect on a more expensive home's value. Each feature was associated with a premium of just 2 percent.

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