Picky, Picky …

Despite regional differences, one thing is certain nationwide: Today’s buyers are pickier than those of a few years back, mandating their new homes be in “move-in” condition. Buyers want everything to look pristine and new so they don’t have to change anything upon moving in.

“Even if it’s old, it should look brand new and be better than comparable neighborhood houses,” says salesman Mark Vuncannon of Allen Tate Realtors in Asheboro, N.C. His buyers in the last five years have looked at twice as many houses as they previously did.

Lisa Johnson Sevajian, with Coldwell Banker in Andover, Mass., has found a similar demanding attitude among lookers. “They now want nine-and-a-half of their ten priorities met rather than the prior seven,” she says. “If counter tops aren’t granite, I lose half my buying pool; if two of four bedrooms need painting, buyers consider the house a fixer-upper.”

To make the situation worse, some buyers go beyond picky. Santa Fe, N.M.-based real estate marketer Christopher Lowell considers move-up buyers the most demanding. “Because they’re upgrading and typically in something decent, they want something much better,” he says. Even stainless-steel appliances are no longer enough, Sevajian says. “Some want something more extraordinary, like built-in appliances camouflaged by cabinet-style doors,” she says.

How’d the market get to this stratosphere? A glut of foreclosure-driven inventory has convinced many buyers to keep looking since they know more listings will come along. Buyers are also inundated with hot trends from the web and shelter magazines and TV shows. “Everyone’s more informed about design possibilities,” Lowell says.

For buyers to find a house, they need to understand when they’re being reasonable versus unrealistic. Sellers, too, should know that some problems are more of a deal breaker.

What Buyers Avoid

The list of what turns off buyers keeps increasing, ranging from the usual suspects (poor landscaping, small or nonexistent closets, dated kitchens and baths, undersized rooms) to more serious structural issues like mold, asbestos, radon and water damage, says Cheryl Bare, with Century 21 Comstock Earnest in Waldorf, Md. “Buyers don’t want to have to deal with big-ticket remodeling,” she says.

And even though it’s tough to describe, many require an emotional connection. “They want to walk in and think, ‘This is it,’” adds Lowell. To make that more plausible, they need to be able to picture themselves in the home, which comes from sellers removing personal possessions, decluttering and adding back furnishings that ooze comfort, all part of staging, which remains popular. If sellers can’t afford to stage their entire home, Lowell suggests starting with key spaces.

What Buyers Can Get Over

The perception of value helps buyers overlook many problems, including a kitchen with poor layout or dated appliances. The same holds true for a foreclosed home that requires work. “If buyers perceive they’re getting a house for a great price in a great neighborhood, they’re often willing to take on work. But it has to be a heck of a deal. Not all foreclosures are,” Bare says.

Sevajian agrees and tells buyers to ignore bad taste if the house has great structure. “I say, ‘Those things can be changed.’” Or, buyers might seek concessions in closing costs or require new paint, carpeting or even windows before closing, adds Vuncannon. The risk, however, is that some buyers walk away before negotiating.

Creative thinking can re-educate buyers how to get around thorny problems affordably. If a master bedroom doesn’t have a walk-in closet but is roomy enough for an armoire, they might be persuaded, Lowell says.

And many like Vuncannon try to explain what’s normal wear and tear versus brand new or being excessively demanding. “I’ve had some who want downspouts to run in a different direction. I try to explain that that’s unrealistic,” he says.

Despite the cautious mood, aggressively priced houses in good condition continue to sell. “Better educated buyers can spot these shinny pennies,” says Bare.