Listings that include the word “parking” in their descriptions are often priced higher than properties that don’t include it, according to an analysis by Zillow of for-sale properties in its database in the second quarter of 2013.
For example, in Riverside, Calif., where “parking” showed up in 45.1 percent of the metro’s listings — the most of any of the large metros Zillow looked at — the median list price of those homes was 5.7 percent higher than those that didn’t include the descriptor.
All but one metro (Minneapolis-St. Paul, Minn.) of the 10 large metros where the practice was most common saw a premium, according to Zillow’s analysis. No. 2 Denver and No. 3 Seattle saw premiums of 4.6 percent and 7.3 percent, respectively.
The reasons behind the premium differ, the Wall Street Journal found. In some cities like Seattle where parking is tight in some areas, especially in its popular downtown, a place with parking is more attractive and can fetch more money, Dean Jones, principal and owner of Realogics Sotheby’s International Realty in Seattle, told the Journal.
In others, like Riverside, Calif., located 60 miles east of Los Angeles, parking is not a problem, but extra parking to accommodate affluent buyers’ many vehicles helps make a listing more attractive, the Journal noted.
In Minneapolis-St. Paul, parking is plentiful, so it’s assumed that a home will have ample vehicle storage space, which might explain why advertising a listing’s parking doesn’t result in a premium, Chad M. Larsen, an agent with Coldwell Banker Burnet Realty in Minneapolis, told the Journal.
Source: Wall Street Journal
