Thursday
July 24, 2014

What Can Drive Up Your Sales Price? Parking

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What Can Drive Up Your Sales Price? Parking

Parking is a hot commodity, and it's becoming a buzzword in many listing ads nationwide. In many parts of the country, home buyers can expect the word to carry a premium on homes for sale, a new study finds. 

Properties that reference parking tend to sell for more money, according to an analysis of listing ads by Zillow. Many of the metros that see the largest increases in sales prices due to parking are those that attract suburbanites and empty-nesters who are used to having a car, says Dean Jones, principal and owner of Realogics Sotheby’s International Realty in Seattle. 

“It makes sense for brokers to assure prospective buyers, ‘We still have room for your car,” says Jones. 

About 23 percent of homes for sale nationwide reference parking, according to the study. In Riverside, Calif., 45 percent of homes mention “parking” in a listing ad and often command a 5.7 percent increase in sales price over homes that don't list parking as an amenity, according to the study. 

However, in some areas, parking isn’t viewed as an amenity but as an expectation, even if it is not mentioned in the listing ad. For example, in the Minneapolis-St. Paul metro area, properties with parking were listed for 4 percent less than properties without parking. 

These are the top metros with the highest percentage of homes for sale that have “parking” listed in the description, according to the study: 

  1. Riverside, Calif.: 45.1 percent of listings mention “parking”
    - Median list price when “parking” is mentioned: $251,000
    - Median list price when “parking” isn’t mentioned: $237, 500
    - Parking premium on price: 5.7 percent
  2. Denver: 44.1 percent of listings mention “parking”
    - Median list price when “parking” is mentioned: $277,000
    - Median list price when “parking” isn’t mentioned: $264,900
    - Parking premium on price: 4.6 percent
  3. Seattle: 41.3 percent of listings mention “parking”
    - Median list price when “parking” is mentioned: $322,000
    - Median list price when “parking” isn’t mentioned: $300,000
    - Parking premium on price: 7.3 percent
  4. Dallas-Fort Worth: 36.5 percent of listings mention “parking”
    - Median list price when “parking” is mentioned: $209,000
    - Median list price when “parking” isn’t mentioned: $179,900
    - Parking premium on price: 16.2 percent
  5. Detroit: 35.5 percent of listings mention “parking”
    - Median list price when “parking” is mentioned: $124,900
    - Median list price when “parking” isn’t mentioned: $105,000
    - Parking premium on price: 19 percent

Source: "Park Here, Pay More," The Wall Street Journal (Jan. 10, 2014)

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