June 7, 2019
Buying a home has never been the easiest task for first-time homebuyers, but real estate professionals have always been able to find a way to market to all generations. But since Millennials started getting out into the workforce and came of age to buy a house they’ve stumped real estate agents and brokers alike in how exactly to market to them.
With a high percentage of Millennials heading back to their parents’ house once or twice following college, the new median age of a home purchase has been bumped up to 29 years old. From a lack of steady income to lifestyle choices, like traveling abroad or choosing to work in the gig economy, Millennials are putting home buying on a list of wants and not needs. So, how do real estate companies market to this generation of potential home buyers?
Reading the Market
Instead of marketing to Millennials in the traditional ways, which are always to keep in practice (i.e. billboards, website, old fashioned word of mouth), real estate professionals are starting to change their methods. Millennials are all about personalization and ease, and, thanks to technology, this can be achieved, even in the home buying process.
Millennials make up nearly one-third of all home buyers nationally, making it the largest portion of any generation. The generation before them, Generation X, make up about 27 percent of buyers and younger Baby Boomers coming at 16 percent.
Millennials look for online shopping when it comes to browsing for a home. This is the generation that grew up online, so it’s only natural that their search begins online. Make sure to invest in everything from high-quality media and social media connectivity to start them out with.
Another thing to know is that size doesn’t matter as much as it used to. As cities and downtown districts become more populated, Millennials are looking for smaller spaces as their concern has shifted to efficiency and sustainability. That being said, location is even more imperative in their home buying search. A lot of Millennials are looking to live in places that wrap everything together for them, including keeping work, entertainment, food and drink, and shopping all nearby to where they live.
Communicating with Millennials
Patience isn’t necessarily a virtue when it comes to working with Millennial home buyers. Quicker responses and more personalized messaging is what is valued now, so being extra attentive to their communication preferences is important for any real estate professional looking to make a connection and a sale. Talk, text, email–find out the best way to stay in touch.
Furthermore, a website should include the most up-to-date information where these buyers can learn more about the local market as well as the process behind buying a home. Keeping an active blog and aerial footage and 3D options to view a space are things that attract the more visual-friendly crowd and lets them see exactly what they’re in for, getting a feel for their possible future home.
Real estate professionals need to make sure they have the right insurance lined up in this new environment as well-read potential buyers in the Millennial generation are making sure to look before they leap. Being caught up in something like negligence when it comes to the home buying process can put you in a tough spot legally. It’s best to make sure you have the right insurance coverage on hand to protect your financials as well as your reputation in the event of a claim.
About Associations Liability Insurance Agency (ALIA)
The ALIA Team (part of the Riverton Insurance Agency Corporation), specializes in helping real estate professionals find the affordable and comprehensive liability insurance they need, without the hassle. ALIA dates its roots to 1991 with the founding of FREA, Foundation of Real Estate Associates. In 2013, ALIA was created to work with multiple insurance companies thereby broadening the portfolio of products to customers. For more information about our products and services, contact us today at (800) 882-4410.