Millennials can be special and reluctant to buy rather than rent, but they also make up the bulk of home buyers this year.
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4 min read
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Right now, it seems like one of the worst times for millennials to invest in their first homes. And yet the real estate market has been booming for thousands of years. According to Realtor.com's 2020 housing market predictions, millennials will make up the largest percentage of home buyers this year. This shouldn't seem too surprising, given that the millennial age group is currently the largest generation in the American population – except for the fact that millennials are notorious for choosing to rent rather than buy.
Securing first-time buyers in the millennial generation should be high on a real estate agent's list of priorities according to this latest data. Here are three tips to help first-time millennial buyers make a successful purchase that they are comfortable with.
Related: 3 Reasons To Invest In Real Estate Now
1. Do whatever it takes a buyer to make a decision accessible online.
Covid-19 is only accelerating some of the existing macro trends in real estate, such as the importance of being able to follow the real estate market online. In 2018, a statistic found that 51 percent of buyers now find their homes online, according to the National Association of Realtors. This is more important than ever in COVID-19 times today, when buyers are reluctant to meet with a real estate agent to view a home in person and open homes are not as common.
This includes using the 3D virtual tour features that allow millennials to tour from the comfort of their own home or share the experience with friends and family outside of town. This is important to note as over 25 percent of millennials are still receiving financial assistance from their families when it comes to home purchases.
2. Help anxious first-time buyers hold hands.
Many of these first-time buyers don't fully understand the home buying process, which can lead to anxiety or feelings of instability. The more support and knowledge you and your company can provide to guide them through the process, the more likely they are to complete their purchase. Assess the potential barriers to entry that first-time buyers might face early in this process and see how you can help them learn what they need to know to keep things going more smoothly.
Related: 3 Factors To Invest In Real Estate In 2020
3. Try to understand the buyer's values.
One of the main characteristics of the millennial generation is the emphasis on values. It is values that increase the likelihood that they will buy from certain brands or work for certain companies. They stand for something and want their purchase dollar to reflect the same. These values will be different for Millennials, with a common value of experience. Millennials therefore tend to long for walkability (how far to their new favorite café in the neighborhood?) And for proximity to activities and experiences.
These values can arouse emotions. So, understanding what is most important to a buyer than what is expected of the actual home can help the selling process evolve. For example, a beautiful new home in the suburbs may have the white granite countertops and the entertainment area on the back patio, but that may not excite the excitement and readiness of seeing a millennial buyer in the same way as a home near a weekend could buy a farmers market or a bike path. Get to know each buyer and find ways to incorporate their values in the properties you show them.
Of course, these values change over time. However, this doesn't mean that all millennials will do what you want them to do. Their individuality makes them millennials. Spend time with each new buyer looking for indicators of these preferences.