Features vs. Benefits

A few years ago, Heléne and I met with a potential client and had a discussion about Features vs. Benefits.  It was an interesting talk, and I think both home buyers and home sellers might find it informative.

The potential client was planning on selling his Echo Park Mid-Century home and wanted to know what price we thought it might fetch.  We walked him through the neighborhood comps and he was convinced his house would be purchased at a premium over the comps.

He noted that he had recently done a remodel of the kitchen, which included a red glass tile backsplash and, if I recall correctly, a under-counter wine refrigerator.

So we talked about Features vs Benefits.  A FEATURE is a description of an element of that home in an objective, technical way.  A BENEFIT, in contrast, is how the Buyer will get some sort of value or happiness from a feature; it “paints a picture” of how that Feature would enhance the life of the Buyer.  Think of it this way – a FEATURE is objective, and a BENEFIT is subjective.

So let’s go back to that hypothetical kitchen.  The features he pointed out were:

• New red glass tile backsplash
• New under-counter wine fridge

Easy enough, right?  These are features.  But the benefits of these two elements are tougher to pin down.

Let’s start with the new red glass tile backsplash.  While the “new” part is generally a positive factor because most people think “new” adds to the feel and value of the kitchen, unfortunately, some percentage of the home buying population does not like the color red, particularly in a room as central as a kitchen (and as a color of tile, it can’t be easily or cheaply changed by painting).  So we know new red backsplash tiles is a feature, but it’s tough to say whether it is a benefit for all buyers.

A similar situation happened with the wine fridge.  While it’s new and provides a way to keep your wine cool (the features); not everyone drinks wine, which again makes its benefit tough to note.

So, for buyers, when you are considering buying a home, keep these ideas in mind.  If you like a prospective home, first look at the comps to see if the seller has priced in these features accurately relative to the market.  And second, consider whether YOU find the benefits of these features worth any premium over other comparable properties.

And for sellers, when you are considering what price point to list your property at, be realistic about its features.  Try to put yourself in a potential buyer’s shoes and ask yourself if everyone would share your opinion about its feature’s benefits.

Contact us to discuss your home’s value, or to have us help you find a home with the features (and benefits) you’re looking for.