Will millennials ever buy in the current housing market? Odds are, they will - but it might take some time and extra effort.
Getting this generation into real estate, often for the first time, is a tricky task that every agent needs to prepare for. The key is marketing, and a great Realtor will find the best methods for appealing to the fast-moving lifestyles of millennials.
Finances are a main sticking point for many, and finding affordable markets is important. A great agent uses the services available, such as property data and mortgage records, to find the ideal home.
Millennials and the housing sector
In order to best appeal to this generation, real estate agents should looks at market conditions and what concerns millennials have with home buying.
An unfortunate fact is that the economy isn't doing recent graduates any favors, as many are saddled with large school loans and an increasing level of debt. Despite this, there are still people in their 20s and 30s buying, but reaching them requires a different approach than older home buyers.
Most millennials would be first-timers in the housing market, according to MSN Real Estate. While financial limitations certainly play a factor, it isn't the be-all and end-all for them. It will still be possible to buy, and increasing the number of younger adults into the market will help boost the economy and potentially dictate the future of real estate.
Paul Ashworth, an economist with research firm Capital Economics, believes that not all millennials will be hampered by student loan debt, the website noted. It comes down to financial planning, and building credit and equity.
"These were people who were most likely to be buying a home with very little equity at the very top of the boom," Ashworth told the news source. "They would also have been the people who got whacked the hardest when the market turned down because they wouldn't have had the time to build up equity."
While this makes millennials slightly more prone to ending up with short-sales or foreclosed houses, marketing to this generation needs to appeal to their desire to own, and the fact that it might be financially possible.
Developing an ideal marketing strategy
Due to the monetary concerns facing millennials, a solid marketing plan should address this. The generation moves quickly, and many are heavily invested in the Internet and social media.
Therefore, fast delivery of valuable information is important for appealing to a younger crowd. Use Courthouse Retrieval System's tools to acquire mortgage and real estate records to provide up-to-date housing market knowledge.
Melissa Lavigne-Delville, vice president of strategic insights and culture education at NBCUniversal, recently spoke at Variety's Massive Advertising Summit, according to L.A. Biz. She explained that millennials are often slightly older than many assume, with the generation classified as those born between 1977 and 1995.
Due to the range, the generation is diverse - and many still posses more traditional values, Lavigne-Delville noted. When marketing, don't be afraid to appeal to these family structures when selling homes. Generation Y may appear young, but some sentiments are more in line with older counterparts.
Tips to become a great seller
In addition, communication will always be a marketing priority, especially for millennials, according to The KCM Blog. A shifting generation with a variety of needs, the best real estate agent will listen as much as they will talk, and each client requires a different touch depending on their personalities.
The best strategy involves perfect time management. Many Gen Y-ers are juggling work and family, and are typically on-the-go. Therefore, make each meeting and showing as efficient as possible.
Appeal to the safety and soundness of both the home and the finances, and always have quick access to critical information. Speed sells, especially to millennials - and a smart Realtor is an effective one.