Between historically low mortgage rates and a strong job market, more people are being pushed to consider buying everything from first time homes to vacation or investment properties. Once considered the generation of the ever lasting renter, Millennials are starting to enter the housing market with force. A Millennial is someone who was born between 1981 and 1996. As many are either entering or are now within their thirties, more and more are starting to look for homes to accommodate their growing families. At the end of 2019, Millennials made up 46% of all mortgage inquiries, a number that was up 43% from one year prior.
For an investor or seller of any kind, identifying with your buyer is a key first step in listing your property in a way to sell. Here are a few tips for appealing to the droves of millennial buyers predicted to enter the market in 2020. For a generation that's known for being tech savvy and prone to performing hefty online research in advance, it's important that sellers embrace technology and invest in the quality of their online listing and virtual presence. According to a report from the National Association of Realtors in 2019, 98% of Millennials utilize the internet for their home search, and 80% of them found their home on a mobile device last year. With virtually all Millennials using the internet as the primary tool in their home search, sellers should take note and consider investing in high quality listing images or even adding the element of a virtual home tour. Sellers may also consider highlighting features aside from square footage, as most millennial buyers were cited stating that they were less likely to compromise on school and neighborhood quality when deciding which homes to buy. This means that it's worth highlighting the home's location and additional attributes as opposed to having the focus be the mere size of the home.
Accustomed to either living at home or renting out a space, the Millennial first time home buyer does not want a fixer upper. They want a home that is move-in ready. Because of technology, Millennials are better informed about their housing options than any other generation before them. They are a research-driven generation who want everything to be just right. At the top of their wish list are updated kitchens and bathrooms, an open floor plan, a good location that has a high walk-score, and a good cell phone and internet service. Also consider, many in this generation work from home. With technology advancing more everyday, for many, the commute to work is just a few steps down the hallway. To appeal to the millennial buyer, consider staging a clean, clutter-free space that can be used as an office.
For many of the Millennials entering the housing market this year, the home their purchase now isn't going to be their "forever" home. Its nearly just a stepping stone for them as they start to expand their families. Investors know if they do not cater to this generations enormous buying potential, they will be missing out on a lot of opportunities. And though it is the Millennial who is doing all the research, usually the home buying experience is a family affair. Parents are coming out with their children to see homes more and more, and some assisting their kids with the down payment or the whole mortgage. Gone are the days where you only see what your realtor wants to show you. Now the search is very heavily guided by the Millennial and what they are finding online. It's a game changer that all sellers are becoming more familiar with in order to cater to this new large group of buyers.
