Selling your house this spring? Mentioning these features in your home listing could get you a higher price.

Dow Jones

14 Mar

MW Selling your house this spring? Mentioning these features in your home listing could get you a higher price.

By Aarthi Swaminathan

White-oak flooring and outdoor showers are among the upgrades that attract buyers' attention, Zillow data reveals

Selling your house this spring? Mentioning these features in your listing will catch home buyers' attention - and their dollars, according to new research.

Mentioning specific materials, such as soapstone for kitchen countertops, or a bathroom with a particular kind of open shower, can boost a home's sale price, according to new research from the real-estate platform Zillow (Z).

Home buyers are willing to pay nearly 4% more than expected for a home listing that is described as "remodeled," the company said. In other words, buyers were willing to offer $13,194 more than they would for a typical home in the U.S., the company said.

Buyers' willingness to pay a higher price for upgraded homes stands out amid the crisis of housing affordability that many Americans are facing.

Even as mortgage rates remain high and home prices climb to new records, home buyers are willing to pay more for homes that they don't have to fix up themselves, Zillow's research suggests. Nearly 30% of all for-sale listings on Zillow are described as renovated.

"A remodeled home may come with a higher price tag, but a buyer would get to spread that additional cost over the course of a 30-year mortgage versus paying cash upfront to make similar upgrades themselves," Amanda Pendleton, a home-trends expert at Zillow, said.

Home buyers "consistently pay more for homes that are more current and less personalized," Gina Lorenzo, a Charlotte, N.C.-based real-estate agent with Compass $(COMP)$, told MarketWatch. "And the types of renovations and finishes they are looking for in a home are very predictable."

The home features that buyers will pay more for

What types of features prompt buyers to pay more? Zillow provided MarketWatch an early look at a new analysis on the terms mentioned in for-sale listings and the price premium associated with them.

When these features are mentioned in a listing's description, the house sells for a certain percentage more than similar homes that don't mention those features in their listings.

        Upgrade       Sale premium 
   Soapstone         3.5% 
   Wet room          3.3% 
   White oak floors  3.2% 
   Teak              3.1% 
   Venetian plaster  3% 
   Outdoor shower    2.8%

How much does it cost to make these coveted upgrades?

It depends, said Aldo Ceja, a home-care expert at Thumbtack, an online marketplace where homeowners can hire service providers for home-improvement projects. Ceja is also a general contractor based in Redwood City, Calif. who works on renovations and home maintenance.

Estimating the exact cost of renovations that include these materials - some of which he considers high-end - can be "tricky," he told MarketWatch, because prices vary based on factors such as location, the amount of labor required and the size of the renovation and home.

Upgrading larger spaces, for instance, costs more, he said. Complexity is another factor, "especially if structural changes, plumbing or electrical work are involved."

Working with some high-end materials also requires more skilled craftsmanship, which comes at a higher price, Ceja said.

"Given these considerations, a renovation incorporating all these elements falls into the luxury category, with costs ranging from tens of thousands to hundreds of thousands of dollars," he added.

Professional installation is essential for these materials, Ceja said, further adding to the expense, "so it's always a good idea to get quotes from multiple contractors for a more accurate estimate."

Here are Ceja's estimated costs for each of Zillow's most sought-after home features:

Soapstone - $70-$150 per square foot: This material is usually used for countertops on sinks or surfaces. Ceja estimated the cost to be between $70 and $150 per square foot when installed. "Soapstone is durable and heat-resistant but can be pricey due to limited availability and specialized fabrication," he noted. Other options for countertops include marble, quartz and granite. Soapstone was one of the top materials that designers believe will gain the most popularity this year, according to one annual home-design study by Apartment Therapy. Soapstone can be lower-maintenance than other stones, but it also has more limited shades that are darker, the company said.

Wet room - $20,000 to over $50,000: A wet room is essentially a bathroom with an open layout. All surfaces are waterproof, and it usually includes a walk-in shower with no door. "The wet room area is fully tiled, and water can go anywhere, thus the name," Gladys Schanstra of Drury Design told MarthaStewart.com. Building one could cost from roughly $20,000 to upwards of $50,000, Ceja said. "Costs depend on waterproofing, high-end fixtures, glass enclosures and drainage complexity," he said. "Wet rooms are complex, involving waterproofing, drainage and specialized tiling."

White-oak flooring - $8 to $25 per square foot: Ceja's estimate ranges from $8 to $25 per square foot. "White oak is a durable, stylish hardwood that costs more for wider planks, custom stains or engineered options," he said. "The price is very dependent on the grade of wood, and the finish applied." Other options for flooring include red oak, and "engineered" wood, which is made by attaching a veneer of real wood to plywood. It's generally cheaper than white-oak flooring, which is typically made of solid wood.

Teak - $25 to $60 per square foot: Teak is a hardwood that originates from Southern and Southeast Asia, known for its durability and its natural appearance. It's usually used for decking, bathroom flooring or cabinetry. Ceja's estimate is between $25 and $60 per square foot when installed for decking and flooring. Custom teak vanities or cabinetry would run between $5,000 and $15,000, he said. "Teak's natural water-resistance makes it ideal for wet spaces but adds to costs," Ceja said. "Teak used in outdoor applications will be very expensive."

Venetian plaster - $10 to $30 per square foot: This limestone wall finishing lends an "earthy and soft" look to spaces and has been used for thousands of years to coat walls, according to Architectural Digest. It's usually applied to walls and ceilings. Ceja's estimate is between $10 and $30 per square foot. "[It's] hand-applied and requires skilled labor, making it more expensive than standard plaster or paint," he said. "The cost is very dependent on the amount of layers, and the expertise of the installer."

Outdoor shower - $2,000 to over $15,000: A favorite feature for houses near beaches or in other temperate climes, an al fresco shower gives homeowners a chance to bathe under the sun. They can range from basic enclosures to luxurious spaces. Ceja's estimate is wide: from $2,000 to over $15,000. "A basic outdoor shower starts at $2,000 to $5,000," he said, "while high-end versions with custom enclosures, plumbing and teak finishes push costs higher."

The 'lock-in' effect has created steady demand for remodeling

Demand for remodeling has been steady over the past two years, particularly because many homeowners have been staying in their houses for longer than expected, said Eli Moyal, founder and chief operating officer at Chapter, a renovation company based in New York City.

That's partly due to the so-called lock-in effect, which refers to homeowners who don't want to give up the ultra-low mortgage rate they had locked in during the pandemic.

"A lot of people are [saying] that 'this is my place for the next 10 years, and I'm going to make improvements and upgrades because I want to stay here,'" he told MarketWatch.

But in the markets he's active in, which is on the East Coast, he's seen more renovations of entire apartments. "The homeowner is basically saying, 'if I'm going to do it, I'm going to do everything now and not do it in phases,' which can be more expensive," Moyal said.

The most commonly renovated rooms and how much they cost to remodel

The most commonly renovated rooms in a home are the kitchen and bathrooms. The median amount homeowners spent on kitchen and primary-bath upgrades were $24,000 in 2024 and $15,000 in 2023, respectively, according to Houzz, a home-remodeling site.

When it comes to luxury renovations, the top 10% of spenders pay $180,000 or more on a major remodel of a high-end kitchen, the company added. A major kitchen remodel typically involves replacing all of the cabinets and appliances.

In addition to usually being the most expensive, kitchen renovations also take the longest to finish, the company said. In 2023, a kitchen renovation took 9.6 months of planning and 5.1 months of building, on average.

A full bathroom remodel, meaning tearing down everything and starting over, would cost about $25,000 on average in Milwaukee, Wisc., said Dave Grulke, owner of Big Dave's Services in Milwaukee.

But adding an entirely new bathroom where there wasn't one before would cost over $100,000, said Grulke, who primarily does kitchen and bath remodels.

Tariffs could drive up the cost of home renovations

The Trump administration's tariffs on products from Canada, China and Mexico - which officials say will address trade imbalances - could drive up the cost of home renovations. Some of the materials that go into home renovations come from those countries.

In a kitchen renovation, prices for the following components could be impacted, according to Marine Sargsyan, a staff economist with Houzz:

Kitchen appliances: Many high-end or specialized appliances are imported, and could be subject to tariffs, which would mean a higher price, Sargsyan said.

Countertops: Materials in countertops like granite or marble come from abroad, and could be impacted by the tariffs.

Cabinetry: Cabinets are a major feature of a kitchen, and the components, from wood to finishes such as door handles, could be impacted by tariffs.