The real estate market has been on the move in the last couple years. With the recovering economy, local real estate markets have seen a resurgence in buyer activity and rising home values. A lot of real estate experts have declared that now is a great time for home buyers and sellers. With low mortgage interest rates, home buyers have more purchasing power since they can afford more “home” at low rates. Home sellers are enjoying the market because their properties have risen in value and they can sell for a higher price point. But more interestingly, new construction companies have also caught onto the resurgence and have been working hard at building new homes for those hungry buyers. As a result, homeowners are now facing harsh competition against new construction homes (or housing starts). Here’s a comparison over the growth in housing starts and house prices:
How to Sell Your Home Better than a New Construction Home
From census data, we can see that new construction is experiencing a boom. New master-planned communities are sprouting up and re-sale homes are competing to attract a buyer against them. Oftentimes, it may be hard to steal a buyer’s attention away from the new, sparkling amenities a new home provides, but you do have a few tools at your disposal. For one, you can market your home to a specific buyer. A lot of new, master-planned communities are being built on the outskirts of the metropolitan area. However, today’s new wave of home buyers aren’t necessarily eager to move to the outskirts. Home buyers, especially Millennial home buyers, are deeply interested in living closer to the city center, which could put your home at an advantage (it’s a matter of up-selling your location). Here’s a quick look at who’s buying this year:
In addition, Millennial home buyers are looking for key traits in a house, such as a home office and connectivity (i.e. good cellular reception, high-speed internet). They also prefer wooden floors over carpeting and appreciate spacious entertainment areas to host guests. With this knowledge, you can develop a strong marketing campaign to attract them. You could do some home renovations to get their attention or you could do a little home staging to highlight those amenities.
Marketing to a Specific Home Buyer
By marketing your home to a set of specific buyers unique to the Madison area, you can put yourself one step ahead of your competition. New construction communities are trying to sell their properties to the most amount of people. They are showcasing their neighborhood amenities and new home features, but you can do one better by showing how your home fits their lifestyle. By connecting to their internal desires (and how they live), you’ll grab their attention away from housing starts and position yourself to sell better than a new construction house.