They are re-hashing an old 2016 article here, and I’d like to add:
Homebuyers want quality at a fair price – that’s all.
http://www.businessinsider.com/death-of-suburbia-series-overview-2017-3
An excerpt:
The cheaply constructed mansions of old are plummeting in value as homebuyers are more discerning.
In an article in August 2016, Bloomberg cited data from the real-estate site Trulia that showed that the premiums paid for McMansions have declined significantly in 85 of the country’s 100 biggest cities.
For the study, Trulia defined a McMansion as a home that was built between 2001 and 2007 and that had between 3,000 and 5,000 square feet of space.
In one example, in Fort Lauderdale, Florida, the extra money that buyers were expected to be willing to pay to own a McMansion fell by 84% from 2012 to 2016. In that same city in 2012, a typical McMansion would be valued at $477,000, about 274% more than the area’s other homes. Today, a McMansion would be valued at $611,000, or 190% above the rest of the market.
Experts told Business Insider’s Madeline Stone that the youngest generations of homebuyers tend to value efficiency more than ever before and feel that McMansions are impractical and wasteful.
I’m thinking the large, smelly gorilla in the room of this article might be that too many McMansions were poorly constructed, and infused with unfortunate layouts. Wastes of square footage for rooms with no reason. The mindlessness of many of the archetctual plans, encased in cheap stonework facades, are coming back to haunt sellers. Many times these homes are so close together, they might as well be described as massive condo’s. They seemed to be built for quick initial turnover, not longevity, or with community in mind. Who wants that?
Today’s buyers will live with high density. Either you do Rancho Santa Fe and 2+ acres, or you don’t. If you don’t, it’s not a bad – you are willing to sacrifice privacy for location, condition, etc. and for most buyers, it’s worth it.
Are they in top condition? If not, EVERY buyer starts deducting for about 2x the actual cost of repairs.