Regardless of the industry, brands are increasingly focusing their efforts on Millennials. This generation outnumbers the Baby Boomers and has more buying power than their parents, representing a huge opportunity for brands. In the real estate industry, generally, Millennials have been slow to enter the home buying market, but in the next decade the number of households in their 30s is expected to increase by 2.7 million. Here are a few characteristics of Millennial homebuyers:
- Millennials currently makes up 31% of homebuyers
- 24% are repeat homebuyers
- 6% purchase a multi-generational home
- Millennials are typically up-sizing when purchasing a home
- Motivation behind Millennial homebuyers is the desire to own a home
Tips for Millennial homebuyers
Millennial homebuyers, those in the 18-35 age bracket, view homeownership differently than any generation before. Previous generations would purchase homes in their 20s and 30s, moving at a much slower pace. They stayed put in the cities in which they grew up, desired “roots” and the status of homeownership. Millennials are a much more mobile generation and less concerned about being tied down by roots. They have heard stories of home ownership from those who bought during the market high only to see their home values sink during the recession, and homeownership does not have the same status to them as previous generations. While some Millennials have been turned off by the thought of buying and owning a home, many still are looking to buy homes. Here are some factors for Millennials to consider when looking to buy a home:
Don’t assume you can’t afford to buy
Many Millennials come out of college with student debt and little in savings, assuming they do not have enough for a down payment or the income to afford a purchase. Mortgage brokers and lenders are lending more than ever, and loan options enable qualifying first-time buyers to purchase with as little as 5 percent down. While it is still smart to put down 20 percent down, Millennials who are credit-worthy and responsible with money can take advantage of low interest rates and today’s loan options.
Don’t go into the process alone
With today’s technology and access to online listings, many people don’t believe that it is still necessary to work with a real estate agent. Agents play a big role in the real estate process, one that many people don’t realize until after they’ve gone through a transaction. A good, local agent will know the market like no one else because they have seen hundreds of homes, have relationships with many other agents and have done plenty of deals. Purchasing a home can be an emotional process, but having a solid resource by your side through the process will help buyers make strong decisions. Choose the right real estate agent who can assist you in accomplishing your goals.
Take your time
Buying a home is an expensive investment that can be personal and emotional. While the flow of information may be much quicker thanks to technology, the home buying process should never be rushed. Learn the market, do your research, go to open houses and don’t feel pressured by the “hot” market. You may make several offers before you find the perfect home for your price.
Decide which type of house makes the most sense
One of the decisions you will face when buying a home is deciding which type of home you will need based of your current life circumstances. Do you travel often and have little time for property maintenance? Will you need a yard and space for children? Would you like a yard or garden? What kind of neighborhood are you looking for? You should be asking yourself these questions while you go through home buying process.
Buying a home is a big decision and it takes time. Millennials have been hesitant to become homeowners, but with today’s technology and the guidance of a trusted real estate agent, Millennials have the tools they need to go through this process successfully. Roger Fazendin REALTORS® would love to stand by your side as a solid resource in your home buying process.