‘Farmhouse’ Sinks, Exposed Beams Premium Selling Points for Entry-Level Buyers

So, what are the big selling points for houses these days–besides, say, simply having a house for sale in this sellers’ market?

Any fan of HGTV’s popular “Fixer Upper” will tell you big selling points are a “farmhouse sink;” exposed beams; and shiplap. Well, maybe not shiplap.

But RealEstate.com, Seattle, says these Chip and Joanna Gaines-inspired farmhouse/craftsman features are exactly the selling points that are attracting entry-level buyers. The Zillow-owned brand said first-time buyers are willing to pay premiums for these and other features.

RealEstate.com analyzed listing descriptions from millions of entry-level homes–defined as those priced within the bottom third of the market–to see how certain home features, amenities and design styles affected sale price. It found that starter homes mentioning “coffered ceilings,” “claw-foot tubs” or “farmhouse sinks” in their listing descriptions saw some of the highest sale premiums of the keywords analyzed, selling for as much as 29 percent above expected values.

Furthermore, the analysis said homes described as “craftsman” performed better than any other design style analyzed. Energy efficient features also command high premiums among entry-level homes. Homes mentioning “solar panels” sell for as much as 40 percent more than expected, but mentions for higher-tier homes only saw a 13 percent boost.

“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,” said Jeremy Wacksman, Zillow Group chief marketing officer.

Zillow noted Millennials are playing an increasingly larger role in the housing market, making up 42 percent of all homebuyers today and 71 percent of first-time buyers. “Their preferences–from location to home features–may have an increasingly notable impact on the market,” Wacksman said.

For some Millennials, buying tiny homes is a way of living in desirable areas. Redfin, Seattle, said heavily populated areas in California have hundreds of tiny homes on the market–though not necessarily at tiny home prices: one home for sale in Royal Oaks, Calif., with 465 square feet has a list price of $599,000.

Properties in Redfin’s 10 most-desired tiny homes survey of actively listed single-family homes under 600 square feet in 80-plus markets ranged from $87,000 to nearly $600,000. Six of the top 10 desired tiny homes are in the hot California market; the other four are in the Seattle area.

“It’s not surprising to see so many California homes on the list,” said Redfin Silicon Valley agent Kalena Masching. “A lot of West Coasters are embracing a more minimalist lifestyle, and also grappling with some of the highest home prices in the country. Many are willing to give up square footage if it means the opportunity to live in a neighborhood they desire.”

Redfin said Riverside, Calif., currently has the most tiny homes on the market, with 153 listed, followed by Phoenix (99), New York (86), Los Angeles (70) and Tampa (55).