Gone are the days when we thought Millennials don’t have plans to buy homes. Surprisingly, they are no longer babies and they want to become millennial homeowners.
The major problem now is that they have been stumping real estate experts because of their home buying patterns and choices. Obtaining a mortgage is certainly a top priority for nearly all owners, especially millennial homeowners, but there is so much more. Some are even looking at contract for deed options, but there are a ton of ways to get the job done.
This article explains who Millennials are, what they will like to have in their homes, and why real estate experts are finding it difficult to satisfy their wants.
Who are Millennials?
Millennials, also referred to as Generation Y, are comprised of people born between the years of 1980 and 1995. They happen to be the largest generation in history and research has shown that they are very specific, regularly use technology, are highly educated, have self-confidence, and connect socially.
Marketers and researchers are baffled by millennials because while some embrace traditionalism, many ignore it. Millennials are now adults and they want homes.
Things to know about millennials:
The first place millennials check is the internet
You shouldn’t be surprised to see this because it has been stated earlier that technology plays a major role in a millennials’ life. The first thing millennials do is check online home listings. 50% continue the home purchase process through the internet.
Millennials control the market, statistically
They might be the youngest adults but they are the most influential home buyers. They are currently the largest group of homebuyers and more than half of them that have yet to buy a home have expressed their desire to do so in the near future.
A millennials’ view about owning a home is different
It’s an undisputed fact that millennials want different things in a home. But aside that, they view home ownership from a different perspective compared to the Baby Boomer and Generation X. The preceding generations see owning a home as a status symbol and as a long term investment. Generation Y sees it as a necessary rite of passage. They are more concerned about the security and independence that comes with owning a home. They can move from home soon because of their job flexibility.
Millennials look for different things in a home
When they are ready to spend on a home, they are more concerned about convenience, affordability, and comfort. The proximity to their workplace is also critical. Being cognizant of convenience and affordability allows millennials to save and make sacrifices to ensure they pay their mortgage.
What do millennial homeowners want in a home?
Selling to prospective millennial homeowners isn’t as easy as you may like it due to their preferences. However, here are the features a home for a millennial home buyer must have:
Home office space:
The rate at which people work from home is growing drastically and it keeps growing. This makes the home office an important factor that most millennial home buyers consider before buying a home.
Low maintenance features
Millennials are one of the busiest generations (they don’t have time to carry out the maintenance chores). They will prefer homes that require low upkeep and maintenance.
Homes that are energy efficient (e.g. a home with solar panels) will help millennial buyers kill two birds with one stone. They spend less and they also keep the environment clean and safe.
As stated earlier in the introductory part of the article, millennial buyers are researchers and constantly use the internet. Millennials will always prefer properties found online. This is why it is important that real estate experts set up real estate websites with excellent photos and virtual tours of the property.
Updated Kitchen and bathroom
Millennials always want an updated kitchen and bathrooms in homes because they may not want to spend extra cash or deal with the hassle of construction. They are budget conscious and will prefer spending their savings on a down payment or furniture.
Tips to satisfy millennials homeowners and buyers
Help them with the home buying process
Research and studies have shown that 90% of millennials work with a real estate agent and lay emphasis on the fact that they always want help during the process.
To satisfy future millennial homeowners, ensure you guide them through the home buying process.
Make your competitive advantage specific
Every real estate agent has something unique to offer and millennials know this. To stand out among other agents, ensure you state why you are unique.
Majority of millennials pay the down payment from their savings (this shows their limitation in financial options). You can help by offering professional advice on how they can save or use their savings in the best way during the process of buying a home.
Tips you can give future millennial homeowners
It’s advisable to pay student loans and other debts before thinking of buying a home
Paying a student loan is one of the biggest challenges facing millennials. However, buying a home is probably the most expensive purchase they will make, which makes it better to pay off debts before taking the challenge of buying a home.
Pay the down payment from your savings
Most millennials buy homes with a mortgage, that’s why having a strong down payment is critical to secure a low-interest rate and pay off the mortgage faster.
Buy what you can afford
The folks at Streamline Mortgage Solutions have created an engaging infographic, showing you the 8 top mortgage trends for millennial homebuyers. Take a look!
The values of homes keep rising and paying such a high price is frustrating. Millennials are also at a high risk of depression and addiction. So, the best advice for millennials is to be patient. Don’t be tempted to pay for a home that’s not within your price range. And when moving, know your budget as well!