Amenities: Understanding What Makes Property More Valuable

What Is an Amenity?

The term amenity refers to a feature of a property that makes it more valuable to potential buyers or tenants. The term can be used to refer to features of both residential and commercial properties. They can be featured by homeowners in real estate listings of single-family homes to attract potential buyers or renters of a single. In a commercial setting, amenities can be part of a more sophisticated marketing strategy to attract tenants or other users of the property.

Understanding Amenities

The term amenity is commonly used in the real estate industry. It is a characteristic that is deemed to be a benefit of a piece of property, whether that's a residential or commercial structure. Amenities typically boost the value and/or appeal of a property and can be divided into several different categories including public and property-specific.

Residential property amenities typically appear in a multiple listing service (MLS) listing. Realtors upload a set of parameters ranging from the most basic variables to the less essential, attractive features that may catch the eye of a potential buyer such as the property's location. For many buyers, amenities are features found in the four most important rooms of a house—the kitchen, the master bedroom, the dining room, and the bathrooms. Homeowners who invest in these four rooms tend to enjoy the highest return on those investments when selling a home.

Types of Amenities

Amenities fall into two general categories—public amenities and property-specific. Public amenities are those that are available to everyone in the area. In the case of a residential home, parks, schools, shopping centers, and post offices are considered public amenities. As the name suggests, property-specific amenities relate to just one piece of real estate. For instance, a swimming pool or hot tub is considered a property-specific amenity. Amenities are further divided by the type of property as noted below.

Residential Properties

You've probably heard the phrase "location, location, location"—a popular saying among buyers, sellers, and real estate agents. For most buyers, location is a property's most important amenity. This characteristic can mean the difference between a $200,000 property and one that's worth $1 million.

Variables such as construction style, floor space, and the number of bedrooms or bathrooms can also determine whether a buyer looks further into a property. Beyond these primary areas, buyers look for amenities such as specialized rooms. These may include an entertainment room, home office or a workout room, and may also include countless conveniences to attract buyers.

You'll also find other amenities noted for residential listings that are public. Buyers also look to the following to determine whether they'll buy in a certain neighborhood—schools, shopping centers, post offices, parks, playgrounds, running trails, recreational centers, and others.

Commercial Properties

Commercial property developers have increasingly devoted precious floor space to amenities they feel will differentiate their structures from otherwise similar structures. Industry research has shown that these improvements tend to fall into one of four categories:

• Fitness and health-related options such as gyms or on-site training facilities
• Amenities that serve as distractions from everyday routines such as game rooms, rooftop lounges, or socializing space
• Flexible, comfortable workspaces such as open floor plans, noise control, or other technological infrastructure
• Natural environments like green terraces outside or walking paths

These principles have also expanded beyond office developments to other projects such as hospitals or universities seeking to market themselves in increasingly competitive environments.