12 incredible ways millennial home buyers are changing the home buying process
As time goes on, we can expect more and more millennial home buyers to enter the market. Generation Y is having a more significant influence on the home buying process with each passing year. The truth is, they are doing it differently than their predecessors, Gen X, and the Baby Boomers. With that said, they are indeed changing the way the real estate industry does business.
In fact, according to Business Insider, the Millennials are projected to outpace Baby Boomers as the largest living adult generation this year. If you are a real estate professional, it would be smart for you to familiarize yourself with the buying habits and preferences of millennial homebuyers.Below are 12 Millennial home buyers are changing the market.
1. Millennial Homes Buyers know more than you do!
Apps such as Zillow and Realtor.com have brought upon buyer enlightenment. When I show property these days, I, as the professional, am already aware that my prospective clients know much more about that particular property than I do. Often, sad to say, they bring me up to speed on a specific property. For this reason, I never meet prospective clients with a “power play” mentality. My goal is to help them reach the next step in the home buying process, pure and simple.
2. Don’t call them, they will call you.
Today many millennials view talking on the phone as inefficient and unnecessary. They prefer getting right to the point with a text or email. Texting allows them to multitask, handling other important affairs in their lives more easily. As many of us realtors are older than our millennial counterparts, we need to remember how they prefer to do things. We must adapt to them, not the other way around. I have found myself texting far more than talking over the last few years. The point here is when millennials need you, they will contact you. Do not be overbearing by calling them on the phone too often, potentially losing them as a client.
3. Fast customer service means “now”!
When I get a real estate lead that comes in via email or text, I know I have no more than two minutes to respond at the most. Preferably, I like to respond in under a minute. After the two-minute mark has passed, the odds are they have already found someone else to help them. When I was coaching Zillow premier agents, I attempted to instill this into their brains. Millennials expect you to make yourself available immediately. This demand has made automated chat-bots, automated answering services, and other software s necessary tools for your real estate toolbox.
4. Millennial Home Buyers have done their homework.
Not only do millennial home buyers know about the properties they are interested in, they know the local demographics, employment rates, market projections, and history of sold properties in their prospective areas. Instead of informing them or arguing with them, add to what they already know. They will find this helpful, and that is a good thing.
5. Millennials expect transparency
We all know as professionals, we need to be transparent with the public we serve, that goes without saying. What I am saying here is we need to be very detailed about the home buying process. We need to outline it with thorough expectations being sure to impart to our millennial buyer, a solid understanding of how all of the services come together to complete the home buying process. This is where an excellent realtor can let their value shine.
6. Millennial’s care about what others say.
In today’s world, it’s understood that reviews of your services will be examined. No one knows this better than the millennials. Notice how I said the word “examen”? If they are serious about hiring you, not only will they look at your reviews, they will stock your social platforms, seeing how you interact with others, including family and friends. Why not? It is so easy. I have to admit, I’ve been guilty of doing the same thing when investigating the services of others.
7. Options, Options, and More Options
Past generations looked at a home and said, “ok.” That’s all there was to it. Not anymore. Millennials look at the same home and see just a starting point. They know what they want; they just don’t know how to get it and how much it will cost them. Here again, is where an experienced real estate agent can shine delivering their value to their millennial client. Millennials are also open to your ideas as far as options go as long as you don’t get your feeling hurt if they say “your idea sucks.”
8. They love Video
For a long time, only luxury homes used video to market themselves. Most buyers did not expect to see a video of a traditional middle-class home, let alone a virtual walk-through tour until now. With the advancements of technology, millennial homebuyers like to see drone footage and experience 3D home tours. This marketing strategy is especially valued by out of state millennial home buyers. I purchased a 3D camera and drone and have used it many times, showcasing real estate listings to millennial homebuyers. (Piloting a drone for commercial use does require an FAA Part 107 certificate)
9. Millennial Home Buyers are frugal
Perhaps millennial home buyers remember the great recession, or maybe it is the student debt that many of them have accrued, the “entitlement ” generation, believe it or not, is a bit frugal. With the latest technology, they certainly have an advantage over previous generations at their age. All they need to do is input various numbers and statistics in an app, and an algorithm will tell them if buying that home is a good choice for them.
10. They think in the “short” term
When my parents bought a house, it was for life or at least thirty years. Many of my former millennial clients have expressed interest in turning their first home into a rental after four to six years. That is smart. Today many well-paid jobs are done remotely, allowing people the flexibility that former generations only dreamed about. Because millennials and subsequent generations are no longer anchored to a particular location, it allows them to purchase real estate with not only their domicile needs in mind but future investment strategies as well.
11. millennial home buyers know what they want
Millennial home buyers know what they want, that is not the problem. The problem is, can they afford it? It can be very challenging to find the right house at the right location and still stay within the millennial budget. As a real estate professional, I encourage them to be patient and fast. When a house comes on the market that meets their needs physically and financially, they have to move fast or lose out.
12. Millennials are an altruistic socially responsible generation
Millennial home buyers are interested in efficiency and waste. Energy-efficient homes that incorporate smart technology allow the millennials to feel they, as a part of society, have contributed to the health of the community and environment. Which they have. I think that I can say with some certainty that these ideals were not at the top of the priority list of former generations. Alternate energy sources and green technology will play even a more significant role in the years to come as it pertains to real estate.
As real estate professionals and service providers, it is our job to understand the needs of our customer base. While researching the topic of millennial home buyers along with my own professional experience, I can say that I am quite impressed with the thoughtfulness and practicality I have learned about and witnessed from the millennial generation of home buyers.
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About the Author
Benjamin Ross is a real estate expert, investor, writer, and professional who serves his clients by writing unique content to incorporate into their blog, marketing strategy, or website. Benjamin offers his clients real estate content written by an experienced industry professional and top writer who has been quoted by Forbes, Us, and World News, Realtor.com, and Yahoo Finance, to name a few. Many writers are efficient and skilled, but few have any actual real estate experience or an intimate understanding of the industry. Benjamin can offer you this unique blend to further advance your real estate business.
More about Benjamin Ross
As a Realtor, it is Benjamin’s priority and intention to treat you, the client, the way he would want to be treated if he was the client. Benjamin believes every client is unique with a unique set of goals. It is Benjamin’s job to help his clients accomplish their goals big and small.
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As a Community Leader, Benjamin has partnered with the PSJA (Pharr San Juan Alamo) school district helping future business owners navigate their path to success. Benjamin serves as a mentor as well as engaging with high school student within the classroom, teaching them what it takes to be successful. Benjamin also contributes financially to further promote the activities of the school district, especially for low-income students.