Why You Should Never Shun Millennials
You gotta love real estate. You wake up every day and you’re guaranteed to see something different going on in this wonderful industry. It’s never boring.
One of the changes we’re seeing as fall nears is rising home prices – up 4.1 percent the last time I looked. No big surprise there – inventory levels remain low. But I also suspect we’ll start seeing rising interest rates before the year is out.
So with these two trends you have to think about buyers. How do you find and attract buyers? It’s always a vital question for REALTORS®, but especially in these market conditions.
A group of buyers you should mine with a heavy pick and big shovel is millennials – those ages 25 to 34. Oh I know, there are studies that show millennials aren’t buying homes. Some economists say they’re delaying homeownership because they’re also delaying marriage and having children. The good news is that practically everyone, no matter their age, still believes that homeownership is part of the American dream.
Millennials are smart – and the research bears that out. As a group, they’re better educated than boomers. And I believe sooner or later they’ll enter the market. They know the numbers and they know in the long run owning beats renting.
Plus, the fact remains, NAR and several other groups have said the largest group of potential first-time homebuyers in the market today are, you guessed it, millennials.
Zillow Chief Economist Stan Humphries says 42 percent of millennials say they want to buy a home in the next one to five years, compared with 31 percent of Generation X (35 to 50-years old).
This is why it’s key you keep millennials in your sphere.
So what do you need to know to find and attract millennials? Here are a few tips you might find helpful:
Know that they have a lot on their plate. They’re just starting to figure out their careers because the job market was tight when they finished school. And they’re likely considering marriage or starting a family. Plus, they probably have some school debt. So go easy on them. A home purchase is just another big item to them.
Be an educator, not a salesperson. No one likes an aggressive salesperson, especially millennials. They want useful information that can help them through the process. That’s it. No pushing. Use infographics and social media to offer millennials helpful data about the market and the home buying process and benefits.
Think urgency. Interest rates are projected to go up and we all know (and millennials, too) higher rates take away buying power. Millennials don’t like to lose and they’re all about saving.
Have an online presence. The overwhelming majority of millennials start their home searches online. Create a solid online strategy that begins with a good search engine optimized website with strong calls to action. Include social media (join popular groups and forums), blogs, email and online advertising.
Sell neighborhoods and communities, not just homes. A new NAR survey says millennials prefer walking over driving by a substantially wider margin than any other generation. And they’re the most likely age group to use public transportation. They want short commutes to work, and want to be able to walk to shops and restaurants. They also like living in attached housing.
Before I let you go, I have free information on generational selling. Simply visit http://getbobsnotes.com/generationalselling.
Let me hear from you. Are you targeting millennials? How can you start improving the way you’re marketing to them? Are you comfortable with them? Do you feel you understand them? If not, what can you start doing today to be a better REALTOR® for millennials? Please send any comments or questions you have to [email protected] or www.facebook.com/CorcoranCoaching.
By Bob Corcoran