Yahoo Finance I’m a Real Estate Agent: 5 Things My Frugal Clients Look For in a Home
As expected, frugal homebuyers have a very practical approach to real estate. These people do their homework before starting the process to ensure they’re making a sound investment.
See: 10 Things Frugal People Always Do When They First Buy a House
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Frivolous spending isn’t their thing, so they tend to focus on the practical aspects of a home, instead of flashy features that may attract other buyers. This can allow them to avoid costs that many buyers don’t think about until after the closing papers are signed and the keys are handed over.
Covering all the bases helps them choose a home they can truly afford. While there’s never a guarantee they won’t face unexpected expenses — i.e., having to quickly dip into their emergency funds for a repair — they perform careful due diligence to avoid it.
GOBankingRates spoke with several real estate agents to find out what features their frugal clients tend to seek out in a home. Here’s a look at five items commonly on their checklists.
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Reliable Appliances
Frugal clients aren’t interested in buying a home and then quickly having to spend even more money to replace appliances. Bill Gassett, founder of Maximum Real Estate Exposure, said this type of buyer appreciates Energy Star appliances and updated HVAC systems.
“Over a year, these items will have an excellent payback,” he said. “My clients love seeing these items in homes and will pay more to have them.”
This makes sense, as Energy Star systems can provide savings of up to 20% off a utility bill, according to Environmental Protection Agency-backed Energy Star. Additionally, the typical price to install or replace an HVAC system is $5,000-$10,000, according to HomeAdvisor.
Learn: Barbara Corcoran Says Now Is the ‘Best Time’ To Buy a House: Here’s Why
Energy Efficiency
Speaking of energy efficiency, Josh Dotoli, principal of Dotoli Group, said in addition to high-efficiency appliances, frugal buyers also place a high value on elements like solar panels.
“Not only do these features save money in the long run, but they also align with the environmentally conscious mindset that many frugal buyers have,” he said.
Solar panels that entirely cover a home’s energy usage can allow the average homeowner to save up to $1,500 per year — assuming an average energy bill of $125 per month, according to Forbes.
Low Maintenance
Some buyers go wild for unique features that look amazing but require notable upkeep. However, frugal people don’t typically fit into this category.
“Frugal buyers are often looking for homes that require minimal maintenance and upkeep,” Dotoli said. “This could mean choosing a newer home with updated features or finding properties with low-maintenance landscaping.”
While features like a swimming pool, complex flower garden or a fountain might look amazing, don’t expect a frugal person to want a property that requires this level of maintenance.
Location
It’s not uncommon for buyers to pay extra to live in a certain neighborhood, but frugal people take a different approach. Instead of gravitating toward popular areas, they may opt to avoid them at all costs.
“Location plays a major role for frugal buyers,” Dotoli said. “Many are willing to sacrifice certain amenities or features to live in a more affordable area.”
He said this might mean they opt for a property farther from the city center or one that’s in a less trendy neighborhood.
However, some frugal buyers are focused on location for different reasons.
“I’ve had clients who want to conserve on fuel consumption and want everything in close proximity to their everyday business and personal demands,” said Jeff Miller, a Realtor with Berkshire Hathaway HomeServices Nevada Properties. “Which includes having a property in walking distance to their place of employment or bus line.”
These people might be willing to pay more for a home, so they can incur long-term savings by having to drive less or not own a car at all.
Good Price
It isn’t surprising that frugal buyers are laser-focused on price, but sometimes there’s more to it than simply chasing the lowest sale price.
“Frugal clients look for a good price first and foremost, and that varies based upon a client’s needs and definition of value,” Miller said.
As with every buyer, these people have different priorities that guide their home search.
“Some want the smallest price, which can typically mean smaller square footage to conserve on utilities,” he said. “Some are more long-term thinkers and are seeking a value property, which will rise in value as a long-term investment for their future.”
Therefore, it can’t be generalized that all frugal buyers will purchase the lowest-priced property that meets their criteria. Those with extra cash may be willing to spend more now to potentially receive a larger return on a future home sale.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: 5 Things My Frugal Clients Look For in a Home
