Amenities are features of a property that make it more valuable to potential buyers or tenants.
Amenities may also be 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. With commercial real estate, amenities can be part of a more sophisticated marketing strategy to attract tenants or other users of the property.
Key Takeaways
- An amenity is a feature of a property that makes it more valuable to potential buyers or tenants.
- Amenities are commonly used in the real estate industry and can be found in property listings.
- Amenities can be public or property-specific.
- Location is one of the most important amenities for most residential buyers.
- Commercial property developers have expanded the types of amenities they offer in their buildings to remain competitive.
Understanding Amenities
An amenity is a characteristic that is deemed to be a benefit of a piece of property, whether that’s a residential or commercial structure. The term amenity is commonly used in the real estate industry. Amenities typically boost the value and/or appeal of a property, and will lead to a higher home cost and higher mortgage. They 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.
Tip
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 many people. 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, whether it is residential or commercial.
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 $1 million property.
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 room
- 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.
Frequently Asked Questions (FAQs)
What’s the Difference Between Amenities and Facilities?
In many instances, both terms are used interchangeably since both add more value to a property. But, technically speaking, amenities are those items that conduce to comfort, convenience, or enjoyment, while facilities are designed to facilitate an action or process. A gated compound, covered parking, or security system would be examples of the latter.
Does a Swimming Pool Add Value to a Property?
Swimming pools can increase the value of a home, especially in hot weather climates. After the COVID-19 Pandemic, a home with a swimming pool was worth, on average, 47% more than a home without one. It can also attract potential buyers and increase the resale price. However, keep in mind the costs associated with installing and maintaining a pool.
What Is the Most Desirable Amenity in a Home?
According to a study conducted by Forbes Global Properties, the single most sought-after home amenity in 2023 was an outdoor kitchen, followed by indoor or outdoor pools, spa amenities, and fitness centers.
The Bottom Line
Real estate amenities are any additions to a home or a commercial property that are considered valuable to tenants or buyers by making the space more comfortable and attractive. Features such as location, a clubhouse, swimming pool, gym, or playground enhance the quality of life or work for residents or employees, and thus they play a key role in the real estate buying process.