Any real estate professional that is currently active in the market is aware of the constant debate taking place regarding the market’s newest and hottest prospective buyers, millennials. The generation that has been deemed technology savvy, impatient, and sometimes even entitled, is who many economists and REALTORS® alike believe will be the answer to reviving the housing market. How to capture their housing needs? That is the magic question.
The market studies present two strongly conflicting viewpoints when it comes to Millennials entering the world of home ownership, Millennials are either putting off buying homes due to crippling debt/the lack of desire to own a home or they are highly interested in ownership and are finding ways to overcome the challenges to get the keys in their hands.
“I think many people in our age group want to purchase homes,” says 2nd Grade Teacher Anna Salisbury, 24. “We always felt we were throwing away money when we were paying rent, and our money went towards a place we didn’t truly like. We wanted to buy a house so that we could invest our money instead of just paying rent. Buying a house has allowed us to really make a home. It has not been easy, but it has been worth it!”
The monetary difficulty has also been offset for Millennials with the introduction of new FHA record low down payments of 3.5%, as well as Fanny Mae closing cost assistance programs. While Millennials typically have been paying higher amounts for rentals with smaller starting salaries than generations before them, their importance to the housing market has helped them to receive new options faster to get them into a home of their own.
Better Homes and Gardens Real Estate discovered that 82% of Millennials prefer to handle home improvements on their own versus hiring a contractor and that 1 in 3 Millennials prefers a fixer-upper to a move-in ready home site. Millennials as a whole are a generation that has grown up with and without technology. They know the benefits that technology brings to their lives and they have a strong desire to continue to evolve society. A recent study by The Collingwood Group discovered that Millennials would be willing to sacrifice their upscale purchases such as fine dining and daily Starbucks beverages to achieve homeownership. In summary, those who wish to purchase a home have the drive and will find the necessary means to purchase.
While there are Millennials who are not interested in homeownership, recent studies prove that the demographic as a whole is active and excited to buy. They understand the value that a REALTOR® can bring to their search, and they are eager to seek the assistance of a professional. The key to having a successful transaction is to keep them updated on what is happening in the sale and be able to provide them with the expertise they are unable to get on their own. Essentially, actively search for listings, keep them updated, showcase your expertise, and step up to the plate when necessary. These are all steps REALTORS® should be doing on a daily basis, but it is even more essential when your customers are Millennials and can navigate through listings and market statistics much more quickly than ever before.