One report from Zillow states that 42 percent of all homebuyers are Millennial homebuyers, but how can you find them, and how do you connect with them? It seems like every business is trying to understand what makes Millennials tick — how they think, what they want, where they buy and even how they decide to buy. At best, Millennials are often thought of as independent, tech-savvy individuals who prefer an uncomplicated lifestyle, even if that includes nice things. That’s a flattering portrait.
At worst, though, business people believe that Millennials are lazy, device-addicted gypsies who prefer experiences over ownership. They’d rather use that extra thousand to go on a trip to Thailand rather than to save as a deposit on a new home. If you’re looking for Millennial homebuyers, that’s bad news.
Generational Stereotypes
Every generation gets stereotyped, from the Baby Boomers to “Generation X” or Gen Xers to Millennials (formerly called Generation Y) to the next great — and as yet unborn and likely to be renamed — Generation Z:
- The Boomers (born 1946–64) were known for adopting counter-cultural mores. They were the first generation, for example, to partake in widespread recreational drugs.
- The Gen X generation (born 1965–80) is noted for its independent streak. You can’t impress a Gen Xer by claiming to be an expert; you have to prove it.
- Millennials (born 1980–2004) accept technological advancements as a given and focus on best practices. It’s assumed you have a smart phone, for example; how you use it matters more.
Another big difference is the attitudes of the different generations. Boomers are mostly optimists, as they came of age in an era of prosperity. Gen Xers are largely pessimistic. The 1970s and 80s destroyed their faith in the world. Millennials stand apart from optimism and pessimism. They question the very existence of a future worth investing in. Is it any wonder they hesitate about becoming homebuyers?
Millennial Homebuyers Exist
There are Millennial homebuyers out there. With rental prices increasing across the nation, especially in Asheville, NC, and in the Bay Area around San Francisco, even Millennials see the value in buying a home instead of lining a landlord’s pocket. Historically low interest rates in recent years have spurred a bigger push to buy.
As I mentioned earlier, one report (from Zillow) claims that 42 percent of all homebuyers are Millennial homebuyers. If that’s true, they seem to be an awfully quiet and hard-to-find demographic. If you’re seeking to work with Millennials, the questions become:
- Where can you find them?
- How do you communicate with them?
- How can you best sell them houses?
What Do Millennial Homebuyers Want?
Millennials have been unfairly associated with the technology they use regularly. You are not your cell phone, and neither is a Millennial. In fact, when it comes to buying homes, they want some of the same things every generation of first-time homebuyers want:
- Respect from service and industry businesses
- Knowledge of the home-buying process
- Expert guidance to get what they want
- Financing help, especially with the down payment
- Smart choices
- Reliable communication
If you try to treat your Millennial contacts in a special way — trying to connect with them electronically, or posting on their Facebook wall for example — you’ll miss the boat because you miss the point. Millennials don’t use technology to set themselves apart; they use it because it can be useful. But it’s not always the best, most appropriate or even the desired form of contact.
Finding Millennial Homebuyers
The absolute best way to find Millennials who are ready to buy a house is to let them find you. Have a presence where they’re looking. Be the responsible yet connected real estate agent or mortgage lender. Present yourself and your business as trustworthy and reliable. Being professional doesn’t — and shouldn’t — mean being aloof.
If you have a strong website with lots of information and a welcoming tone, you make it easier for Millennials to find you. If you are active on social media, posting cool stories and interesting tidbits, your company name will gain some recognition. If you’re blogging weekly to educate your visitors, you will attract the Millennial market. Here’s more advice:
- Millennials tend to ignore billboards.
- Newspaper ads and direct mail fly right into the recycling bin.
- Television ads are irrelevant since Millennials usually don’t watch local television.
- If you want to advertise, partner with mobile apps.
- If you want local exposure, be active in the community.
- Sponsor events that Millennials attend.
Connecting with Millennial Homebuyers
Don’t forget that all people, regardless of their age, want to get face-to-face time — not FaceTime, the app. Even Millennials will tend to do business with people and companies they like. It’s not just about social justice, although obviously, if your company was known for financing mountaintop removal, chances are you won’t reach environmentally conscious Millennial homebuyers. You have to be more than likeable; you have to be available.
The point is that the key to doing business successfully with Millennials also is the most difficult to deliver. You can’t rely on calling or texting or emailing. If you want to do business with Millennial homebuyers, you have to give them option for contacting you — which means you have to employ every means of access at your disposal:
- Video offerings — on YouTube and other platforms
- An informative website that’s mobile-friendly
- Visible presence on all appropriate social media platforms
- Up-to-date blog posts available everywhere
- Telephone number for calls and texts
- An office for in-person visits and meetings
Don’t Treat Them Different; Treat Them Better
When you work with Millennial homebuyers, you need to bear in mind that Millennials are media-savvy people. They have an innate sense of when they’re being sold a bag of goods. You need to be honest and forthright. You should be available and welcoming. You need to invite them into your business and make them feel comfortable. Answer their questions. Explain what you’re going to do. Then do it.
In other words, you need to treat them as human beings, not generational stereotypes. You need to do all the things that made you successful, like serving the needs of your clients. If your clients happen to be Millennial homebuyers, stay on your toes and do everything right. Do that, and just like your clients of every other generation, your Millennial clients will become loyal repeat customers.
To learn more about Millennial Homebuyers, contact Zack Adam at Prime Mortgage Lending of West Asheville (dba PrimeRate Mortgage Lending Inc.)
