Buyers Home Feature Preferences Reflect Lifestyles Says NAR.

WASHINGTON -- Younger buyers care more about closeness to schools, parks and playgrounds, while older buyers are more interested in a bedroom on the main level and prefer single-story homes, according to a new survey on home buyer preferences by the National Association of Realtors(R).

David Lereah, NAR's chief economist, said this is the first survey of its kind. "This is the most comprehensive look at buyer preferences ever produced and ranks findings in a variety of ways including buyer age, first-time and repeat buyers, regions of the country and locale," he said.

Although most buyers choose homes located in suburbs or subdivisions, homes purchased by first-time buyers are more likely to be older and located in a central city, while repeat buyers are more likely to select a new home. Older buyers are more inclined to purchase in a small town.

There are some strong regional differences. Nearly 90 percent of buyers in the South rate central air conditioning as a very important feature, compared to only 37 percent in the Northeast. Buyers in the West are more likely to desire a patio or fencing, while buyers in the Northeast and Midwest are more interested in a finished basement.

Lereah said that Realtors(R) understand the obstacles buyers face when choosing a home. "Realtors are the best resource to match personal preferences and means with homes that are available on the market," Lereah said. "Since the characteristics and features of homes vary as much as the people who buy them, the knowledge and skills a real estate professional brings to the table are critical in making a wise investment."

The 2004 National Association of Realtors(R) Profile of Buyers Home Feature Preferences shows that among buyers who purchased a home without a desired feature, many would have paid more for a home with that feature. For example, 66 percent would have paid a median of $825 extra for a home with a walk-in closet in the master bedroom.

Nearly three-quarters of recent home buyers say that central air conditioning tops the list of most desirable features they want in a home, while half named a walk-in closet in the master bedroom as a preferred feature.

Ranked next in the preference list are a bedroom on the main level, named by 42 percent of buyers, and a patio or an oversized garage, each with 41 percent. Other desirable features include a cable or satellite TV-ready home (40 percent); fencing (37 percent); separate shower in the master bath (36 percent); a porch (34 percent); and an eat-in kitchen (32 percent).

Urban buyers are more likely to buy a home near public transportation that has hardwood floors and a finished basement. Rural buyers want an open lot with few trees and a single story-home, while suburban buyers favor sprinkler systems, eat-in kitchens and homes less than 10 years old.

Half of the homes purchased were single-story, but buyers of custom-built homes have a stronger preference for homes with two or more levels. The median size among all types of homes was 1,727 square feet, ranging from 1,471 square feet for first-time buyers to 1,920 square feet for repeat buyers. Homes were larger in the South and smaller in the Northeast.

The median age of a home was 15 years. Typically, it had four bedrooms, two full baths and a fireplace. Not surprisingly, homes in the Northeast were older while homes in the South were newer.

The most desired rooms or spaces include garages, living rooms, extra bathrooms and laundry rooms all rated as very important by more than 70 percent of respondents. Three-fourths of buyers were satisfied with the homes age and number of bedrooms and bathrooms; more than six in ten were satisfied with their homes size.

Half of all recent homebuyers report they repainted the interior of their home soon after moving in, while over a third upgraded their landscaping. One out of five plan to repaint or wallpaper the interior, buy new window treatments or update the landscaping within two years of purchase.

Twenty-two percent of first-time buyers plan to remodel their kitchen within two years compared with 11 percent of repeat buyers. Bathroom remodeling plans generated similar findings 20 percent of first-time buyers and 14 percent of repeat buyers. The least likely remodeling projects include in-law suites, media rooms, exercise rooms and attic renovations.

Fifty-seven percent of homes were located in a suburb or subdivision, 17 percent in an urban or central city area, 16 percent in a small town, 8 percent were rural and 2 percent in a resort or recreation area.

The 2004 National Association of Realtors Profile of Buyers Home Feature Preferences was based on a 6-page questionnaire mailed to a national sample of 25,000 recent homebuyers who purchased their homes between mid-2003 and mid-2004. It generated 1,470 usable responses; the response rate was 5.9 percent. A copy of the report can be ordered by calling 800-874-6500. The cost is $50 for NAR members and $75 for non-members.

The National Association of Realtors(R), The Voice for Real Estate, is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Information about NAR is available at http://www.realtor.org. This and other news releases are posted in the Web sites News Media section in the NAR Media Center. Statistical data, charts and surveys also may be found in the NAR Media Center by clicking on Economic & Housing Statistics.

REALTOR(R) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics.