High home values. Low interest rates. Competitive bidding.
Some interesting trends are happening in the real estate industry right now. As an agent out there helping your clients buy and sell homes, it’s your job to stay connected to what’s going on. Doing so allows you to help many families find the homes of their dreams. And gives you a few nice paychecks in the process.
Millennials are buying
One industry trend that doesn’t appear to be slowing down is the impact millennials are making. Simply, millennials are buying. And selling. Now more than ever, they are ending their apartment and townhome leases and buying homes.
According to a recent Zillow study, roughly half of all home buyers are under age 36, and close to half of the sellers are under 41. Why is this happening? Some of the key reasons include career growth, increasing income, student loan payoffs, and less debt.
If you haven’t already seen more millennials coming to you for buying or selling help, you will soon. That means you should be ready to provide them all the essential information they’ll need to make the best possible choices during their journey – from where to house hunt, how to get a mortgage loan, where to find an inspector, and what’s needed to seal the deal.
To equip you for those conversations, this blog will highlight three ways you can help millennials find their dream homes. If you know what they’re looking for, even before they tell you, you’ll be ahead of the game and will impress them with your knowledge and expertise.
Help them find move-in ready homes
Unlike their parents or grandparents, millennials are less likely to get excited about DIY projects. The handyman lifestyle just isn’t that attractive. As a result, when it comes to choosing a home, they don’t gravitate toward fixer-uppers.
So, as you consider which homes to show them, focus primarily (but not entirely) on homes that are “move-in ready.” Many millennials are most interested in moving right in and continuing with their busy lives. Taking on renovation projects that will slow down the process is less of a consideration for them.
If you do have a millennial client who’s interested in a home that could benefit from a renovation, but they don’t have the fix-it skills themselves, you can offer a solution. Tell them about renovation mortgage loans, which will allow them to hire professionals to update their new home. The costs will be rolled right into their regular home loan. It’s a great way to quickly turn a nice home into dream home. It also allows your client to gain some positive home equity right from the start.
For millennials, time is important. But so is cost. With student loan debt and having navigated through some periods of recessions, they want to ensure that they get the most for their dollar. If they’re going to make a large purchase like a home, they want it to be something they can enjoy right away.
Make sure they have some space
Millennials want their space — more bedrooms, more yard, and more room to entertain. Being cooped up in college dorm rooms and apartments doesn’t cut it anymore.
While they may be less willing to pay for a home renovation, they’re more in tune with forking out a little extra cash for their first home. According to Realtor Magazine, 30 percent of millennials spend $300,000 or more on their first homes. This is much higher than the $150,000 to $250,000 average cost for a typical starter home. They’ll pay for space.
What kind of space? They want at least three bedrooms, an open floor plan, and ample yard space. All these things are important both when starting out but also once they start families.
Find them smart houses
Millennials are techy. Maybe you are, too. Or, maybe not. Regardless, if you want a better chance of selling a home to a millennial, you should steer them toward houses that feature technology.
What type of tech are they looking for? Here are some examples:
- USB outlets instead of standard electrical outlets
- Smart thermostats they can control remotely
- Lower-cost security systems without monthly subscriptions
- Smart switches and smart lighting
In addition, millennials seek out homes with dedicated specialty rooms, like media, exercise, or gaming rooms. Don’t forget pools or tennis courts.
Now you have a better idea of what millennials want in a home. File that information away for a while until the next one walks into your office. It might be sooner than you think.
How can real estate agents Help Millennials buy A HOME?: 2-10 HBW. 2. (2020, April 6). https://www.2-10.com/blog/how-can-real-estate-agents-help-millennials-buy-home/.
Yec. (2021, June 1). Council post: How millennials are changing the mortgage and home buying market. Forbes. https://www.forbes.com/sites/theyec/2021/06/01/how-millennials-are-changing-the-mortgage-and-home-buying-market/?sh=325a02bb690b.
Young buyers are skipping the starter home. Realtor Magazine. (2020, March 10). https://magazine.realtor/daily-news/2018/05/08/young-buyers-are-skipping-the-starter-home.