3 Ways High Gas Prices Help Sell a House

Looking for a silver lining to sky-high gas prices? If you're selling a house in this dreadful market, the rising cost of gasoline may give you an edge.

Soaring prices at the pump are changing all kinds of behavior, irrationally in some cases. Even with prices up 30% over the past year, gas just isn't that big of an expense relative to many household budgets. But folks are making fewer trips to Wal-Mart. Buses and ferries are full, and renters are moving close to work.

Even prospective homebuyers are focused on gasoline, according to a survey of Coldwell Banker real estate agents. Three in four agents say the spike in gas is influencing where their clients house hunt; almost all the agents (93%) agreed that a further rise in gas prices would magnify the issue.

Homebuyers still want a good neighborhood, a view, an updated kitchen and modern bathrooms, natch. But moving up the list of priorities are three items:

• A short commute This is always desirable. But with gas prices way up, a gas-stingy drive to work is now the leading consideration among home shoppers with high gas prices on their mind. Nine in 10 agents say their customers are looking for a home closer to work, and that trend is helping the value of homes near commuter stations and big employers.
• A home office Some homebuyers are looking to skip the commute altogether. Three in four real estate agents say more buyers are interested in houses with an office; 68% of agents attribute that priority to the high cost of gas. Coldwell Banker currently lists 25,000 homes with "office" in the description. If you have separate workspace that is wired, private and comfortable, it just might be the deciding factor for today's finicky buyer.
• An urban setting More homebuyers want to be walking distance from shopping and other amenities, in part to cut down on gas consumption. One in two agents say they have seen greater interest in urban locations, and of those noting the trend 93% say it's mostly about the shorter commute; 81% cite the ability to cut gas costs.

Gas savvy homebuyers aren't about to turn around the troubled real estate market -- not even for sellers with all three of these increasingly valuable features, warns Jim Gillespie, CEO of Coldwell Banker Real Estate. But in his 35 years in the business, Gillespie says, "I've never seen gas prices have this kind of impact on homebuyers." If you are a seller, start highlighting these features in your listing right away.

Photo courtesy Flickr user 59937401@N07
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Dan Kadlec

Daniel J. Kadlec is an author and journalist whose work appears regularly in Time and Money magazines. He is the former editor of Time’s Generations section, which was written and edited for boomers. Kadlec came to Time from USA Today, where he was the creator and author of the daily column Street Talk, which anchored the newspaper's business coverage. He has co-written three books, including, most recently, With Purpose: Going from Success to Significance in Work and Life. He has won a New York Press Club award and a National Headliner Award for columns on the economy and investing.

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