Tips for Selling Homes to the Millennial Generation

Experts everywhere are claiming that the perfect time to buy a house is now. Interest rates and home prices are currently at more affordable levels and many mortgage payments are less costly than what you might be paying to rent a space. First time homeowners that seem to be making the most of the opportunity to buy rather than rent are the Millennials. But, they’re not looking to move into just any home. The Millennials are truly a different breed of real estate shoppers that have grown up in an era that makes them different from any other first time homeowner from previous generations.

Why Millennials are Different From Every Other Homeowner Before
According to a survey conducted by Better Homes and Garden Real Estate (BHGRE), the new generation of homebuyers is redefining traditional norms in real estate. Unlike previous generations, 77 percent of survey respondents prefer an “essential” home, equipped with technological capabilities that they have grown up with rather than the stereotypical luxury homes preferred by their parents’ generation. Forty-three percent of those surveyed expressed a need for their living spaces to be as unique as they are. They seek more customized and less cookie cutter features and more than half place home tech capabilities before curb appeal in terms of importance.

In fact, according to the study, 84 percent believe technology is an absolute home essential and, 64 percent wouldn’t even consider living in a home that wasn’t up-to-date with the most recent tech capabilities. Automation is key and often times Millennials will choose a home with an automation system that allows them to control lighting, heating, cooling, etc. rather than a home with a newly renovated kitchen.

It’s clear that what today’s typical real estate shopper looks for in a potential first home is changing. Most Millennials aren’t interested in the coveted formal dining room or gourmet chef inspired kitchen appliances. Why have a second convection oven when you can have a large screen TV to watch while you cook? Dining tables with fine china and silk placements are replaced with office desks, storage, and shelving.

Tips for Selling Homes to the Millennial Generation
As mentioned before, low interest rates are a piece of the real estate puzzle that is making home ownership popular among Millennials. Being able to put just five percent down for a FHA loan allows buyers to bring $15,000 to $20,000 to a closing, making their mortgage payment about $1,200 a month — cheaper than their current rent payments. Demand is high and supply is limited meaning multiple offers on properties and quick financial decisions. It’s becoming increasingly popular to see family members help, paying cash at full price and after the sale has been completed residents typically finance and reimburse their families. In fact, 43 percent of transactions are all cash.

Location also plays a large role in homes that Millennials will consider. They prefer living close to transportation hubs in the city to avoid long commutes and living near popular night life spots, great restaurants, and shopping. Living in the city is definitely a motivator for Millennials even if they have to compromise neighborhood or the age of a house. Their lifestyle and a strong sense of community are what counts and any home in a popular and convenient location matters way more than a bright shiny, new, cookie cutter house that’s just like everyone else’s.

If you happen to be selling your home, chances are you’ll be selling to a Millennial market. This is why it’s important to consider the way you present your home. If you have a grand dining room be sure to express the ease of converting it into a home office, or consider updating your home with a new automation system rather than a kitchen makeover. Make a point of your home’s tech capabilities and be sure to emphasize the things that make your home unique.

If you are looking buy or sell a home in the Dallas, University Park, Highland Park, or Preston Hollow areas, contact Emily Price Carrigan.

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