Millennials have surpassed Baby Boomers as the largest generational group in America, and they now make up the largest group of home buyers. According to the National Association of Realtors, 37% of buyers in our marketplace are Millennials.
So, what is a Millennial? It is a phrase used to describe a generation who would reach adulthood in the early 21st century. They were born between 1981-1996 and today they would be between the ages of 23-38 years old. Other facts show that 26% of buyers are between the ages of 29-38 years old, 69% of these Millennial buyers are married, 86% of them are 28 years and younger, and are first time home buyers.
Millennials believe that education about the home buying process is very important and this goes to show since they are the most educated generation. In over the last five years of being a licensed Realtor, I have always continued to learn and grow in this business. Early on, I decided to design a way to educate my clients, especially first time home buyers, and to teach them all about the process from start to finish. I feel that setting the expectations up front, makes for a smoother transaction.
What’s the biggest reason for buying? It was just the “right time” according to most Millennials. When deciding on the location for their new home, most buyers only moved an average of 10 miles away from where they currently resided. They are comfortable staying in their familiar neighborhoods and would rather not have to commute to work.
Millennials love to be eco friendly and to conserve energy. This can be a deciding factor when it comes to buying new or resale homes. New construction homes feature appliances and home systems that are energy efficient. They use more efficient insulation and windows, creating sealed up homes that are less expensive to heat and cool than older models. All of that translates into lower utility bills.
If an established neighborhood, charm and character, lead you towards purchasing an existing home, and going green is important to you, you may be able to apply for an Energy Improvement Mortgage. These are used to buy resale homes that will have energy efficiency improvements made to them. They allow borrowers to include the cost of energy-efficiency improvements to an older home in the mortgage without increasing the down payment. Energy Efficient Mortgages allow the buyer to use the money they have saved in utility expenses to finance energy improvements.
Millennials also have specific criteria when choosing the perfect real estate agent to work with. The most important reason is that the agent is honest and trustworthy. Since purchasing a home is the American dream, making sure that Millennials are being taken care of throughout the process, and that their opinions and values matter is key. Experience and reputation is the second reason an agent is being selected. A lot of research is being done online these days, so finding an agent who has stellar reviews and happy clients will be considered when making a decision. Coming in third is simply that a friend or family member referred them. Building lasting relationships with my clients is a huge priority. Staying in communication by sending hand written notes on occasion and inviting them to client appreciation parties throughout the year is powerful for referrals. I want to be top of mind when someone they know is ready to buy or sell a home.
As a consumer, please consider what you just read. Make sure you are fully educated about the process, this includes the mortgage side as well. Do your research and find a real estate agent who is honest, knowledgeable and has a great reputation. I’m happy to help! Cheers!