Is your home ready to sell to Canadian Buyers?

By D. Michael Burke

Did you know that 25% of Florida real estate sales are contributed to foreign buyers? Did you also know that a large majority of foreign buyers in Southwest Florida are Canadians? As we’ve seen, the median home price in Southwest Florida is rising and inventory is shrinking. While that is good news for sellers, you’ll still want to make sure your home is attractive to domestic and foreign buyers, especially Canadian buyers. The point is does your property have what it takes to catch the attention of a Canadian buyer? Let’s find out!

Like Americans, economic activities of the last 4 years have also prompted Canadian home buyers to reassess priorities, change preferences and scrutinize every detail to make sure their new house fits their evolving lifestyle. Home sellers and agents alike should understand what design features Canadian buyers truly want.

According to AVIDBuilder.com’s annual study of the home features Canadian buyers wants, there are several shifting trends in desires. Here are some aspects to understand when marketing to the Canadian Buyer:

Small is more desired than big.

The grandeur and opulence of preferences during the boom times of the recent past have given way to desires for smaller, more functional areas that can be summed-up as “practicality without sacrifice.” Canadian home buyers are well aware that big comes with a price and have developed an increasing appetite for sensible designs with increasing utility. While many are willing to forgo space, they are not equating this with having to forfeit functionality.

Functioning Spaces as opposed to rooms.

Cordoned-off boxes are giving way to key functioning areas, driven by lifestyles that often mix family, work, and friends into the same arena. The home continues to evolve from strict borders of tasks, to blended areas of purpose, allowing home buyers to maintain their lifestyle requirements in a world of ever-increasing complexity. Zones for entertaining, working, family activities and retreating, are the focal points important to today’s home buyers. These spaces need to be understood and incorporated into designs for maximum market appeal.

Green is getting attention.

Energy efficiency is not on the wish list for Canadian home buyers in 2012 — it is on the “must” list. Home buyers are increasingly aware of the rising costs of utilities and equally aware of what home builders can do to provide energy efficient homes with today’s building practices and technologies. Paying to operate a home is as important as paying for a home, and energy efficiency is no longer an upgrade in the mind of a home buyer. Understanding what “green” means to potential home buyers will ensure that design dollars are invested in the areas where they will provide the best return.

Here are the top 5 for Canadian buyers:+

1. Walk-in Closets: In each buyer category studied, the walk-in closet came up as a must.

2. Energy-Efficient Appliances: This “must have” item is a natural fit with the overall energy efficiency preference of today’s home buyers.

3. Linen Closets: With the drive towards smaller spaces, the need for storage functionality is increasing and linen closets are an essential element for today’s home designs.

4. Large Kitchen: The kitchen is truly “base camp” for today’s busy lifestyles, and in order to assume its many roles, this is one area where space is still a preference.

5. Overall Energy Efficient Home: Mentioned before but worth saying again, today’s home buyers expect an energy efficient home, and this provides home builders with a unique competitive advantage over the resale market.

Not making the top five, but still achieving honorable mention is the increasing trend toward outdoor living spaces. There is a strong preference for features such as outdoor fireplaces and outdoor cooking areas. With this in mind, plan designs should accommodate the increasing desire of home buyers to expand their living spaces beyond the confines of their exterior walls.

The study did make mention of some features that are losing desirability varied among the Canadian home buyer categories.

1. Butler Pantry/Servery: It may be wallets re-opening with improving times that is causing more restaurant goers and less in-home entertainers, but whatever the cause, the preference for the butler pantry/server is waning.

2. Whirlpool Tubs: Today’s busy lifestyle may be driving the preference toward larger showers and away from whirlpool tubs.

3. Formal Living and Dining Rooms: The formal rooms are giving way to the functioning spaces, and single-purpose rooms are losing their luster.

4. Single-Car Garages: Much like our national anthem, from “far and wide” Canadian’s rely on their vehicles for their busy lifestyles, and home designs offering only single garages are going to be a deterrent to today’s home buyers.

It seems that Canadian home buyers have undergone a “reset” in their preferences and priorities when looking to buy. These preferences will undoubtedly apply to the Southwest Florida market as well. The upcoming season is predicated to be a busy one in Southwest Florida, so you’ll want to do all you can to make your property attractive to Canadian buyers looking for a vacation home or winter home in Southwest Florida. If you don’t know where to start, don’t go it alone! Get an experienced real estate agent on your side who not only understands international buyers, but can assist you in making your house foreign buyer – ready and protect your interests! (11-19-11)