by Courtney Soinski
With the wide range of people in today's millennial generation, it is crucial that you learn everything you can about them so you can target effectively to get more leads and sell more homes. We’ll discuss millennials' shopping habits, favorite home features and most importantly, what they look for in an agent.
If you read my previous article on this topic, then you know that “Millennials” are those born after 1982 and more and more of them are entertaining the idea of home ownership.
Also known as “Generation Y”, this group has the largest share of homebuyers at 31 percent, according to NAR’s Home Buyer and Seller Generational Trends. Additionally, 76 percent of millennials are buying a home for the first time.
How do millennials shop?
It would not be a surprise to most to say that millennials tend to embrace new technology in their home search and are pretty much glued to their smart phones and social media networks like Facebook and Twitter. It is also important to note that while millennials are digitally inclined, they continue to rely heavily on traditional media and move seamlessly between all, consuming information from all sources, sometimes at the same time. They are highly likely to read magazines (94%) and visit websites they've seen in magazines (89%) as reported in the "Magazine Media Factbook for 2013/2014." In other words, they use everything.
According to a study by OmnicomMediaGroup, millennials want recommendations, reviews and ratings to guide them through the shopping process. This generation was hit hard by the recession, so they want to be absolutely confident in what they are about to buy. Simply put, millennials demand control of their shopping experience.
What home features are most important to millennials?
Millennials decide on the area they want to live on depending on the overall quality of the neighborhood and the home’s convenience to work. According to this study, commuting costs are “very important” to 37 percent of millennial buyers and 36 percent of millennials place great importance on heating and cooling costs. Younger buyers are more likely to buy previously owned homes because it is a better price and better overall value. Also, 19 percent of millennials live in urban areas, which is the largest amount of any generation thus far.
Here are some home features that will attract millennials:
- Convenience to job
- Affordable heating and cooling costs
- 3 bedrooms or more and 2 full bathrooms
- Kitchen – Upgraded energy-efficient appliances, island work space and pantry
- Main Bedroom Suite – walk-in closet, full bath and sitting room
- Porch/Deck – outdoor entertaining area
What do millennials look for in a real estate agent?
The majority of millennials are first-time homebuyers, so they want a real estate agent they can trust. They were born into the information age and are used to instant gratification, so it’s very important that their real estate agent is quick to respond. It was found that 90 percent of homebuyers aged 33 and younger used a real estate agent. They also searched on their own for about 2 weeks before contacting a Realtor®. Here are some expectations that millennials have of real estate agents:
- Help buyer understand the process
- Find and arrange financing
- Help with paperwork
- Negotiate better sales contract terms
- Provide a better list of service providers
- Shorten buyer’s home search
Most important traits in a real estate agent:
- Honest and trustworthy
- Good reputation
- Knowledge of the neighborhood
- Caring personality and good listener
- Timely with responses
- Seems 100% accessible because of use of technology like tablet or smartphone
- Calls personally and sends emails with updates
- Communicates via text message
- Has a web page and mobile site to show properties
- Active on Facebook and other social networking sites