Millennials are not only starting to buy houses, they are quickly becoming one of the biggest homebuyer demographics in the United States. Take advantage of this growing market by understanding what sets millennials apart.
Many realtors probably still have an idea of millennials as living at home with their parents, far longer and more frequently than other generations. This is certainly a trend, but it is being slowly supplanted by the trend of millennials buying their first homes—so much so that companies like PwC have listed millennial home purchases as one of the major new trends for the real estate market. One major reason is the soaring costs of apartment prices. It is simply becoming more feasible to look for a new home instead of paying for an apartment.
Millennials are still relatively young in terms of income and credit. This does make it a bit more challenging to find a home mortgage that works for them. It’s no surprise that millennials tend to go for FHA loan options with low down payments. They tend to have low cash reserves and limited options. They are also more likely to use their parents as a resource, both in terms of advice and as cosigners on the loan.
Speaking of parental support, it’s no wonder than many parents are giving their 20-somethings a nudge out the door in terms of assistance. This can go far beyond cosigning, too. Some parents may offer loans directly to their kids to help out when it comes to down payments. In fact, some realtors may find themselves dealing with more experienced parents rather than their kids when it comes to showing and selling homes.
So, what are millennials looking for? This is a demographic that is often recently married or living with small groups of other people, looking for smaller, high-tech houses. They like smart home features and buildings set up for connectivity, but they also have an eye on the classics. Location, light, yards, and appliances are also important to them.
Millennials are incredibly connected. They are the most likely to do their own research, use home-searching websites, and compare multiple features and price points when making their decisions. In some ways, a realtor may be a bit superfluous to them until the time comes to draw up the first offer. Just remember that they will be drawing information from many different sources, including their agents and friends.
Despite their connectivity, millennials are still first-time buyers. They may need guidance, and they want to partner with professionals who know what they are doing. The best way to impress the younger crowd is with a friendly website that offers plenty of information and links to valuable home browsing and mortgage calculation tools.
Zealder offers all inclusive, full feature, millennial friendly real estate websites for a low monthly fee. View our plans and prices to see which plan works best for your brokerage.