GREAT piece on millennials – how they get info, how they want to do business with you and how they make big purchases. I have so many friends who are in the process of selling (or buying) real estate and also many friends who are involved in some aspect of the real estate business – so this is for you guys!!!
The real estate portal Zillow predicts that millennials will overtake baby boomers as the generation purchasing the largest number of homes this year. As a result, their preferences are starting to shape the way real estate business is done.
More than 50% of Millennials search for homes on their phones and, among those, 26% end up buying a home they found that way, according to the National Association of Realtors.
Dealing with these tech-savvy buyers has posed a challenge for the nation’s real estate agents, who are considerably older than the homebuying population they serve. A NAR survey of its members in 2012 found that only 3 percent of agents were under 30 and 81 percent were older than 45.
Below are 10 important ways millennials are changing real estate. Link to full article from US News,here.
Don’t call us, and we won’t call you. Many millennials prefer to communicate by text, but some prefer email. It’s important for agents and customers to clarify upfront how they will communicate and how often, as well as how quickly they can expect a response.
We’ve done our homework. Millennials rarely need agents to find homes for them to see. They usually have their own list, and they’ve already researched comparable sales and chosen a neighborhood. With millennials, you do not control information. What they need is for agents to interpret the information. At times, that can mean demonstrating that the information is not accurate, but this generation may not simply take the agent’s word without proof and visuals.
We don’t like surprises. Younger buyers want to know what to expect and when. They like timelines, checklists and charts.
We want customer service, and we want it now. Millennials expect to be partners in the home search, and they want quick answers to questions. They want information, and they want valid information, and they want it right now. They’re the generation of Google at your fingertips.
Is there an app for that? Younger buyers live on their smartphones and use them as a key tool in their home searches. Apps are often their preferred method to check listings and collect other information.
What did your other clients think? Many millennial homebuyers get recommendations on agents from their parents, but they also do some research online before they ever call an agent. They want to see testimonials on an agent’s website, as well as read online reviews.
You call that social media? As far as millennials are concerned, a Facebook page with listings is something their grandmother would do. They expect agents to engage them on social media. They need to feel like they’re a part of your business. Just reposting an article that’s been posted 1,000 times across the country isn’t enough.
Tell us what data you want, and we’ll text it right over. Unlike older buyers, young people are not bothered by being asked for bank statements, employment verifications or other personal data required for mortgage approvals. The younger people are used to having to supply everything about who they are,” says Don Frommeyer, chief executive officer of the National Association of Mortgage Professionals and a mortgage broker in Indianapolis. “They’ll give you everything.”
No stainless steel appliances? Reject. Younger buyers sometimes have trouble seeing the bones of a home and often don’t know which features can be changed easily at minimal cost. That’s an area where they value guidance from agents. If they’re buying a home that needs work, they also value referrals to contractors and vendors.
Yes, we can afford that. Finding a home they can afford in the location they want is a challenge for many younger buyers, especially in cities. Some are embracing the sharing culture by seeking homes with rental units or rooms that can be rented out on Airbnb or other services. We’re going to see millennials solve that problem in a different way.