Defining Millennial Trends For 2019

Motivators For a Savvy and Successful Bunch: Defining Millennial Trends For 2019

Carl Sandburg himself said, “Back of every mistaken venture and defeat is the laughter of wisdom if you listen”. Many professionals in the real estate industry had overlooked the buying power and redeeming characteristics of the millennial until just a few years ago. They were once categorized as a group who did not have much motivation and were so dependent on technology that they would not be able to accomplish great things in the long run.

It has since been proven that this is now a bunch full of passion, productivity, and in regards to real estate, have a burning need to be understood now more than ever. Despite their nature which has been gravely misperceived, they want similar things from the brands and service providers they do business with just like any other demographic. I remember when my fellow “Gen X'ers” and I sat in classes for copyright law, contracts, and marketing, we were blatantly told that we had the same negative characteristics that millennials have been accused of as well.

Millennials have grown up in a culture that puts a heavy emphasis on convenience. From services such as Netflix to find answers to questions at the snap of a finger, their predominant way to rank anything in life regards how immediately available it is. If millennials are willing to take care to automate tasks such as grocery shopping, it is pretty evident that looking for a way to make the real estate transaction convenient will be at the top of their list as well.

Many choices are one element of the millennial's daily mantra: when they feel as there are enough choices available to them, it gives them the eventual sense that they have a desirable amount of control. Once they find someone they can trust, they possess the ability to be just as loyal to them as a baby boomer would, but they have also been known to have more faith in consumer reviews than any other age group before them.

Ever since millennials have come to be at the junction in life where they have ample buying power, an astounding 40% of them have chosen to enroll in a monthly donor program, and a remarkable 41% give to combat the effects of horrifying natural disasters. They are by no means selfish, and even though many were forced to rent, they are now entering a bit more stable of a period in their lives.

Two years ago, millennials made up the largest group of home buyers, representing 34 percent of the total buying collective. Most millennials were between the ages of 5 and 20 when the 9/11 terrorist attacks took place, and also grew up in the aftermath of multiple wars in the Middle East, which greatly contributed to their sense of political responsibility and the sweeping impact of the youth vote.

When it comes down to the real estate market and the ways in which millennials have reshaped the transaction process, issues such as open houses held on the weekend and negotiating counteroffers have been now thrust in the spotlight. Services such as Dorrmat are poised to help very busy individuals sell their home the very minute they are ready.

Many iBuyer programs are already through the testing phase, stamped, sealed, approved, and working their way to success in cities such as Phoenix, Dallas, Seattle, Las Vegas, and Los Angeles. Closing quickly and getting paid in just a few short days would be of value to any homebuyer, millennial or otherwise. Within just days or minutes, iBuyers will make you an offer on your home during an experience that is always advertised as quick and easy.

Right now, this very tech-savvy group of home buyers surely recognizes that commission rates in the United States hover around 5-6% nationwide. Many experts have argued that while iBuying entities offer convenience, the United States is moving in the wrong direction on the cost category and that the use of technology should lower, instead of increasing costs. The cleaning, staging duties, and multiple marketing tasks are some parts of the transaction that will no doubt sway millennials into using their services.

Having an incredibly fast sale as well as taking showings out of the equation are bound to ramp up the popularity of iBuying platforms for millennials. Once mistaken as wildly impulsive individuals, it needs to be understood that they will research every Yelp-esque forum and message board to check out a reputation, something that beginning their careers during a recession etched firmly into their DNA.

One of the ways that millennials may have been perceived incorrectly is their preference for technology over people. If a well-composed human element is behind the transaction, they will still likely respond positively to the iBuyer model. Nearly 10% of Offerpad and Opendoor sales have come from bulk investors during 2018, as these are individuals who are poised and ready to grab without needing to know every nook and cranny's characteristics.

The instance where a speedy and worry-free transaction exists minus the moving and extended stay hassle will provide great value during the years to come. This well-honed element of control is what will help shape the future and satisfy one of Millennials' prime concerns as far as the deal and change the demands of the role for the listing agent for years to come.