Real Estate Tips for Assisting Millennials Buying Their First Homes
How to target millennials as the biggest group of homebuyers in real estate and cater to their needs
Generation Y (commonly known as Millennials) are the new group of home buyers entering the market. This generation of first-time homebuyers is a great opportunity and they should be actively targeted by real estate agents. If they are ignored agents miss out on a large part of the real estate market. Anyone born between 1981 and 1996 (ages 24 to 39 in 2020) falls into this category. They grew up in the digital age and look at the world differently from their previous generation (generation X born between 1965 and 1980). Their buying preferences and procedures differ. Consider this when targeting millennials in real estate marketing.
Following the generation X, people born between 1981 and 1996 are known as generation Y or millennials and in 2020 are aged 24 to 39. They are described as being optimistic, fond of technology since they grew up in the digital age, confident, ambitious, and achievement-oriented. As the first generation ever to have grown up completely immersed in a world of digital technology, their identities and attitudes have been heavily affected. They value purpose, budget-friendliness, having choices, diversity, etc.
Technology is a significant part of the millennial home buying process, where they rely on mobile devices to search, view properties, and contact real estate agents. They depend on their gadgets and devices and do more of their daily routines digitally, have grown up with the internet, and also have a DIY mentality. They are more likely to take their time with online research to make the perfect decision.
Why Real Estate Agents Should Focus on Millennials?
Millennials made up about 22% of the population in the United States in 2019. Originally known to stay with their families and delay getting married due to the Great Recession, as of 2015, Millennials surpassed Baby Boomers and are now the largest generational group in America. They make up 66% of first-time home buyers and 32% of all home buyers nationally. They are agents’ biggest market. Ignoring them is a grave mistake. They are different and need a different approach. They are not within the age range that makes them most likely to buy a home. Have a look at these stats from the National Association of REALTORS®:
- 89% of Millennials would use a real estate agent. However, they are not as easy to please compared to their previous generations. They have higher expectations and need solid reasons. They love to have options when they are paying for something.
- 45% to 50% find their real estate agent through referrals.
- Millennials generally prefer social media and texting to find products and services. 94% of Millennials use online websites for home searches.
A while ago, real estate agents’ value was based on their information. Now their skills in negotiation, connections, and keeping up with the new trends and strategies defines their value and their success.
As digital natives, Millennials are the most tech-savvy generation ever to be the target of marketing messages.
How to Target Millennials in Real Estate
This generation differs drastically from its previous generations and is to be approached having in their unique characteristics:
Show Me The Way
Many millennials are new to the homebuying market and there are many things that tend to be ambiguous for them. They want their real estate agent to show the way and help them understand the home buying process. Agents need to focus on guiding millennials through the steps of the process and stay by their side. Such insights make it absolutely necessary for agents to educate their millennial audience on different steps of the process to gain their trust. Which homes they can afford, different obstacles, and how they can overcome them, the financial issues, and their options, are some of the topics agents need to focus on while marketing to this group of buyers.
While agents are sharing content on social media, which is where millennials often are, describe how working with you would be like a highlight of how you can help them along the way and guide them through different stages of the home buying process. Answer their potential questions. Show them you know their concerns and they should not worry while they have you by their side.
The Digital Natives
Marketing your services online is not an option anymore. Millennials use their devices to search online and the home buying process is no exception. Your marketing strategy needs to be based on digital technologies. That’s why your real estate website, search engine marketing, search engine optimization, etc. are simply too important. Millennials could care less for offline marketing methods.
If you are hosting an open house make sure you promote it online on social media or millennials are not walking in. in fact, they would rather visit the home through virtual open houses.
Bring On The Social Media
Millennials are heavy social media users and grew up during the cyber boom. This is where they are and agents need to be there. Facebook, Instagram, Twitter, etc. are where you should be spending time on finding millennials and reaching them. You might try other methods like sending emails that appeal to millennials as well, but social media is a different story.
Be A Friend
On the other hand, millennials are more likely to engage with their friends’ content and posts than pay attention to what a brand and business are sharing. Therefore, promoting yourself and try to make a hard sale by methods of direct marketing may not appeal to them. You will be ignored before you know it, you want to earn their business first. You need to be a friend. Connect at a personal level and reduce the formality of how you do business. Business attire and etiquette do not convey a sense of friendliness. Ditch the scripts. They couldn’t care less about your elevator pitch.
Boring!
Millennials tend to have shorter attention spans. They care more for visuals and consequently favor images and videos to text. Writing up long articles on different stages of the home buying process may not help as this generation does not care for them. Luckily, there is a magic success pill for realtors in this matter:
Videos
Millennials spend more time watching videos than reading articles online. It makes sense for real estate agents to invest in the creation and sharing of real estate videos. Videos that are targeting the main concerns of this generation. Videos that explain what the home buying process will be like once they engage in with an agent. Show your expertise and more importantly your support and also your understanding of their questions.
Stand Out
Millennials love the idea of having options and know there are many agents out there. Therefore, you need to play their game and show why and how you are the one they should pick. Show them your unique way of doing things and address their specific needs and concerns. Since they are tech-savvy and use the internet to review agents just like the homes they are going to buy, your online presence is a vital point not to be forgotten.
Price Matters
Millennials are more limited in financial options when it comes to home buying. In fact, their biggest challenge in buying their first home is money. Unlike their previous generation who tend to use the money from their previous home, and many are still using their savings to pay for their student loans. They need to think of another way to get the money to buy a home. Agents need to bear this in mind and focus on this issue in the content they share. Suggest how they can save money or use their funds to buy their first home. Show that you are aware of such an issue and are there to help.
As the price is one of the most important factors affecting millennials’ home buying options, agents need to show them they are aware of such limitations and have the options and also the solutions at hand. Your marketing efforts and messages need to resonate with such concerns millennials tend to have.
Feedback, Now!
Millennials look for immediate feedback. They need to make sure they are on the right path and are not making a mistake. Through their gadgets and devices, they tend to make contact, mainly through text. They save the phone calls for later stages. They will approach you and contact you with their questions and need to have quick answers.
Therefore, real estate agents need to make this very easy for millennials. Provide online options like chat boxes on your website where they can contact you easily without having to go through many steps to submit an inquiry. Make it friendly like a chat where they feel comfortable enough to get quick answers.
Dream House
Millennials have waited a long time to buy their first home and while price matters it does not mean they will accept a box. Unfortunately, many real estate agents think that millennials do not mind or even need to lower their expectations for their first home and provide them with options that contradict what they have in mind. Millennials have waited long to step foot into their dream house. Millennials want to buy new, single-family homes in the suburbs. They are looking forward to building a family. Small but affordable homes do not seem interesting to them. Ditch the starter home idea.
Word of Mouth
According to a study by NAR, Millennials are much more likely to find their agent based on a referral. Agents need to make sure they have great testimonials and reviews. Also, they should master the art of asking for a referral since such methods are challenging for many agents who may find it awkward. Like it or not, millennials, the biggest group of homebuyers now. Rely on word of mouth. If you are going to win their business you need to focus on it. Make an effort to get great testimonials and reviews. Video testimonials, referrals, being on top of your SOI mind, are a few of the actions you need to take.
Takeaway
Millennials are different, they are tech-savvy and love the idea of having options. Despite their limitations in budget, they are not willing to settle for small and cramped homes. They love the digital world and do their research online before they pick an agent and also their home. The old and traditional methods do not appeal to them and real estate agents need to level up their game and improve their online presence to grab their attention.
In order to take your share of the millennial real estate market, you have no option but to meet their expectations. They have a lot of questions about the process of home buying and are looking for answers. Quick answers. You have to be there when they need you with the kind of content they are looking for. Videos are the main type of content they have grown interested in. It is wise to invest in real estate videos that address their concerns and questions regarding home buying.
