What You Need to Know About Millennial Homebuyers

Falling mortgage rates are leading more Millennials toward homeownership. And as “move-up buyers” take advantage of lower rates by upgrading to more aspirational homes, first-time buyers have access to an increased inventory.

Whether they’re buying houses or daily necessities, Millennials approach purchases differently than their predecessors. Research conducted by Sotheby’s International Realty in conjunction with the Boston Consulting Group indicates a shift in how Millennial customers prefer to engage with real estate: Affluent buyers are more connected, communicative, and informed than ever before.

As more Millennials enter the market, it’s important to recalibrate your strategy to align with the outlook and values of this connected generation.

How Millennial Buyers Work With Agents

The biggest differentiator of the Millennial generation is that its members grew up in the digital age. Technical savvy is second nature, and Millennials have easy access to an abundance of information with a few swipes. Despite this change, 87% of buyers in 2018 still worked with agents to find their homes — after starting their searches on mobile devices, of course.

Due to the extensive research they do before engaging with agents, young buyers tend to be well-prepared for their first meeting. Rather than providing basic education about the market and buying process, agents can go straight to sharing valuable nuance with buyers who are ready to make decisions. Millennials recognize the value of in-person guidance to sort through the complex information they’ve compiled and assist with elements not easily explained online.

When Millennials engage a real estate professional, they expect to move quickly, explore a lot of options, and be in close communication. They look for agents who are comfortable sharing information and answering questions on the fly via instant message or text. They view the search as a two-way conversation, and they want to feel involved throughout the process. Agents who can help Millennial clients effectively narrow their searches to match specific needs provide a valuable service.

Overall, Millennials are seeking a different lifestyle compared with previous generations. They’re often open to more understated homes in walkable neighborhoods with easy access to amenities. In fact, many city-dwelling Millennials choose to continue renting their main residence while purchasing a weekend getaway property first.

Knowing these trends will help agents identify and execute on the priorities of their Millennial clients — particularly in markets dominated by out-of-town buyers.

Agents can help first-time buyers pinpoint their needs and match them to different communities. Responsive agents should be able to call out the differences in school districts and city blocks, keeping in mind that life for Millennial clients is likely to change as they reach relational and familial milestones. By digging deep to understand lifestyle expectations, agents help young clients focus on what’s most important, streamlining the house hunt and establishing a strong foundation for a long-term, trusted relationship.

3 Tips to Connecting With Millennial Buyers

Expanding your Millennial client base may require a few tweaks to your established approach. Here are three basics to help create strong connections that produce sales.

1. Market Socially

Appealing to Millennials means meeting them where they are on social and digital media — and using those tools to build upon real connections. Make Facebook, Instagram, and YouTube central elements of your marketing strategy, and don’t forget to get personal. Share fun, engaging content alongside property information to humanize yourself and build an image as a trusted partner. Elevate your social presence from a mere listing platform to a true profile of who you are and what you care about. Post about experiences you have with local businesses or recent success stories to help convey the emotional aspects of the buying experience. This will help you plant the seeds for real connections with this generation.

2. Don't Force Inauthentic Connections

Millennials will quickly identify and dismiss any half-hearted approach to bring in buyers from their demographic. If sustainability isn’t truly something you value, for instance, initiatives to “go green” will feel hollow. Millennials value genuine connection. You need to pinpoint real commonalities, shared interests, and values in line with what your Millennial buyers care about. To avoid coming across as false, take the time to research and understand what really matters to your clients — and why.

3. Become a Resource

Go beyond selling a house. Be someone your clients can count on, even after a sale. Create a network of contacts to help buyers navigate this unfamiliar process and adapt to their new communities. Personal recommendations for services such as insurance, inspections, or repairs will be helpful for those seeking such support for the first time. In addition, introduce clients to the best coffeehouses, bookstores, restaurants, or dry cleaners in the area. Sharing useful insights transcends the transaction and positions you as a resource.

Millennials are a buying generation with unique needs and expectations. But as with generations of buyers before them, successful sales will come down to understanding what’s most important and then meeting — or exceeding — those expectations.