Understanding the Priorities of the Millennial Homebuyer... are you ready?
TOD’s TOP TIP: Create a digital neighborhood checklist! (contact numbers for anything and everything useful! From Plumbers, to Landscapers, to Playgroups, to Schools, to Gyms, to Doctors to Pizza Delivery and Local Eateries).
Here is how to get their attention right out of the gate!
- Market your home online with great photos
Nowadays everyone looks at homes online, but Millennials do so at a higher rate than any other generation. Nine out of ten will turn to the internet during their home search, and will use at least three online resources on average. And the first thing they will see are your pictures. Since they are used to viewing edited Instagram and Facebook pictures, your photos must be attractive and professional. You make clean your home and make any necessary cosmetic upgrades before the photographer takes pictures. Only hire professionals with experience.
- Mention your home's eco-friendly features and smart devices
Millennials are attracted to eco-friendly and technologically modern homes. Highlight your home’s solar panels, smart devices, energy-efficient appliances, and other upgrades when writing your listing description or talking about your home. New technologies like a Nest Thermostat can also make an older home feel more modern. Buyers will be impressed if you can show how these features will save them money in the long run.
Millennials will do extensive research throughout their buying process and value more information when deciding which home to purchase. You should consider doing a home inspection and filling out your paperwork before entering the market. 80% of buyers say that inspection or pre-inspection results are an important factor in their purchasing decision. Many sales do not complete the closing process because an inspection revealed a problem with the home. You can reduce your risk and sell your home quicker with an up- front inspection.
- Show them how it works for their lifestyle
Most Millennials prefer to live close to their workplace and entertainment. Additionally, two-thirds turn to online affordability calculators and other tools to estimate their ownership and mortgage costs. If you help your millennial buyer calculate their commuting, utilities, and energy costs, you will make her feel confident about the purchase. And a more confident buyer is more likely to make it through to the end of closing. Be sure to calculate your annual home costs and present them to potential buyers.
- Give them confidence that their loan will get approved
Most Millennials will be financing their purchase with a mortgage, and may not have a ton of money for a down payment. They also won’t have much extra cash on hand to cover an appraisal that lowers their loan amount. Consider doing your own appraisal up front to know what your home will be valued at by a bank. This will help you price it at a point where loans will get approved, giving buyers confidence that they can follow through with the purchase. This will also help you reduce the risk of a failed closing.
- Make it easy for them to make an offer
Millennials are known for using technology for everything, particularly their finances. Half of Millennials will use online resources for their pre-approvals and mortgages. Make it easy for them to submit offers and other paperwork on your home online.
Having said all of this, don't lose the personal touch!