The 3 changes are in the way buyers search for, view prospective homes and they have changed What they buy as well.
There were always 3 groups of buyer:
Top – Tier buyers: These buyers are willing to pay a premium. This group looks for move in ready homes that have all the amenities they are looking. Homes that have been updated to current trends and New Construction.
Middle -Tier buyers: This group of buyers look for home in the “original” condition, hoping to get it at a decent price and then improve the home over time with sweat equity
Bottom – Tier: This third group were contractors and flippers looking for distressed properties that they could buy at 60% to 70% of retail value.
The middle tier which historically represented a significant percentage of market sales is now disappearing.
Today’s buyers are paying more to obtain mon-in ready homes that look like the finished properties on HGTV.
The past few years there have been societal shifts as homebuyers, for many reasons, are less willing or even capable of fixing up a home they’ve purchased.
They know exactly what they like and almost have no idea how to get it done on their own.
With buyers moving away from “original condition” properties they percieve ass needing alot of work and upgrades, it pushed the middle tier down to the botoom and needs to be priced accordingly.
Most Sellers who do not understand this NEW Reality stand to get far less than imagined.
5 Seller Myths