According to real estate industry experts, higher mortgage rates will likely continue in 2025. While they’re predicted to ease slightly over the coming year, the rock-bottom rates of the past are not returning anytime soon—if ever. It’s no wonder today's home buyers are ultimately looking for affordability.
HomeLight’s Top Agent Insights Survey for End of Year 2024 revealed that first-time buyers frequently look to sellers for mortgage rate buydowns. In addition, market data shows that days on market have increased as buyers take more time to shop for the right property before they commit to purchasing and assuming a mortgage.
That aligns with how real estate agents are helping sellers appeal to buyers and get their homes sold. HomeLight's survey showed that among agents:
- 73% advise sellers to be more willing to negotiate contingencies and terms
- 52% suggest offering flexible financing incentives (such as rate buydowns)
Agents nationwide also recommended that their sellers provide home warranties or pre-inspection reports, as well as home improvement allowances in their listings. Sellers are also being advised to get their homes in tip-top shape before going on the market so that they make the best possible impression on potential buyers.
So, if you're planning to sell in the coming year, you may be wondering what buyers are looking for in a home so that you can highlight existing features or make a few updates. Here's what you need to know.
What Buyers Are Looking for in a Home
In light of affordability challenges, many buyers have shifted their mindset. Smaller, and even “cozy” homes have greatly increased in popularity. Not only are they typically priced more reasonably, but they cost less to live in and maintain—think utility bills or window replacement.
Buyers are also leaning into older homes versus modern, white boxes. They’re looking for homes with character, a vintage aesthetic, and retro appeal. Design-wise, warm woods, texture, light and earth tones have become more sought after, while grey or stark white everything is out.
Another change in what buyers want is a closed floor plan. Yes, walls are coming back in style as appreciation grows for spaces that provide privacy and the ability to enjoy quiet activities, as well as layouts that make it easier to hide everyday clutter and messes. Rooms gaining favor are:
- Dedicated laundry room and/or mud room
- Library, even a small reading nook
- Scullery, back kitchen, or second kitchen
- Den or lounge, away from the main living room
- Separate and intimate dining room
- Office or designated remote workspace
The caveat for sellers with older homes is that buyers also want modern updates—eco-friendly and energy-efficient amenities. After putting their savings into a down payment and taking on a mortgage, many buyers don’t want or can’t afford to immediately tackle renovations.
Some of the most popular amenities include:
- Smart home tech (lights, security system, thermostat)
- Updated windows
- Energy Star appliances
- High-efficiency water heater and HVAC
- Solar panels and whole-home batteries
- EV chargers
- Updated roof and insulation
Last but not least, buyers want storage and more storage. Sellers should showcase features such as a walk-in pantry and walk-in closets, including organization systems. Buyers are looking for homes with garage, basement and attic storage, as well as sheds in the yard for gear and tools.
Home Updates That Appeal to Buyers
For those planning to sell in 2025 or renovate their current home while keeping its resale value in mind, certain rooms, spaces and projects typically deliver a better bang for the buck. And not all updates require a sledgehammer or a bottomless budget.
In general, here are a few projects that current sellers should focus on:
- Catching up on general maintenance inside and out
- If needed, fresh paint inside and out
- Updating builder-grade lights—ceiling fans are even better
- Updating carpet/flooring, hardwoods if possible
- Deep cleaning (especially for photos and open houses)
Now, two of the top three areas where buyers want to see updates are the kitchen and baths, more specifically the primary. These can be daunting as costs to upgrade these spaces can add up quickly. However, they don’t always require a gut renovation. Here are a few ideas.
Kitchen Updates
The easiest way to keep costs down is to stick with the existing kitchen layout, including walls and the location of the sink and appliances. Consider projects that buyers will appreciate such as:
- Upgrade to granite or quartz countertops
- If space allows, expand the island to create seating
- Paint cabinets (especially honey oak) if they’re in good condition
- Install a deep sink, and add a quality spray faucet
- Update the lighting and all hardware—knobs and pulls
- Upgrade to a suite of energy-efficient appliances
- Add even a small table and chairs to create a seating nook
Primary Bath Updates
Again, there’s no need to blow the budget. The 2024 Cost vs Value Report for the Mountain Region shows that a midrange bath remodel has a 72.8% ROI, while an upscale remodel only has a 42.6% ROI. The goal to attract 2025 buyers is spa vibes on a budget. Projects to consider:
- Update countertops to granite or quartz
- Update lighting and flooring
- Add a tile backsplash behind the sink
- Paint the walls or hang wallpaper
- Swap pedestal sinks for vanities with storage
- Paint the existing vanity
- Update faucets, fixtures, knobs and pulls
- Replace a builder-grade mirror with a vintage find
- Add plants and other colorful accessories
If the budget allows for a more elaborate reno, wet rooms are popular with today’s buyers. These European-inspired spaces combine the shower and tub in one seamless, waterproof area.
Outdoor Updates
Perhaps due to the pandemic, comfortable outdoor spaces are now on many buyers’ wish lists. The more seamless with indoors the better. But not too fussy or high-maintenance either. Ideas:
- Improve and clean up the lawn landscaping
- Create designated gardening spaces
- Install a deck, patio, hardscaping and walkways
- Cover the back patio for protection from the elements
- Add both aesthetic and functional lighting
- Create a built-in fire pit area
- Improve curb appeal and style the front porch
- For big budgets, an outdoor kitchen is very popular
Selling Your Home in 2025?
With the market changing over the last two years, selling in 2025 may require a more thoughtful strategy. Where to concentrate your efforts and budget to prepare your home can also vary.
That's why it's important to have an experienced, well-supported PorchLight real estate agent by your side. They can advise you on everything from smart pricing to making any of the above updates (or not), negotiating buyer requests, and achieving the best possible outcome for your property.
