What Are Millennials Looking for in Real Estate Transactions?
According to the National Association of Realtors (NAR), millennials are now the largest buyers of real estate in North America, overtaking Gen X and boomers for the first time. In some ways, this generational passing of the baton is par for the course.
But in other ways, the demographic shift will likely revolutionize the industry. Millennials aren’t like previous generations. At the risk of stereotyping, millennials are plugged in, impatient, unafraid of risk and suspect of received authority. Their expectations and inclinations will have a sizable impact on the traditionally fusty industry.
This article explores what millennials are looking for in real estate transactions. If you work in real estate, consider these points as you develop a strategy to accommodate the new generation of buyers.
Millennials are the first generation of “digital natives,” people who grew up alongside the internet. As such, they are comfortable executing important tasks and communications online – in fact, they prefer it.
Real estate agents who still require in-person meetings may start to rethink their approach. Likewise, companies that market exclusively through the MLS will need to develop a more robust web and social presence to reach leads.
Transparency and Accountability
Naturally, the generation that grew up amidst a world of information at their fingertips expects information accessibility. But understand, this is also the generation that grew up with concerns surrounding data privacy and the push toward corporate social responsibility. They don’t just value transparency and accountability – they expect it in all of their transactions.
This partly explains the success of Nobul, the popular real estate digital marketplace that helps bring “transparency and accountability” to the real estate industry.
The platform, helmed by CEO Regan McGee, allows consumers to vet real estate agents according to sales histories, verified reviews and more, while offering them resources and information to make wise choices.
“Millennial first-time home buyers are our target demographic,” McGee told Yahoo! Finance. “When people buy and sell real estate, they want to do it the same way they do everything else in their lives, like traveling or getting an Uber.”
Convenience and Speed
Speaking of Uber, millennials have a reputation for prioritizing convenience. The generation that pulled up some of the most disruptive tech companies values simplicity, speed and ease in their transactions.
In part, this explains the popularity of e-signing, remote third-party services, online mortgage approvals and real estate chatbots – to name a few recent trends. Practitioners should leverage some or all of these tools to offer turnkey, quick client support.
Remote Buying Opportunities
Lastly, millennials are, by and large, less risk-averse – at least when it comes to remote buying. As Insider reports, millennials are buying properties “sight-unseen” at a staggering rate. The trend might be a knock-on effect of the pandemic, but some experts suggest that remote buying will remain popular in the coming decades.
Practitioners who wish to accommodate remote buyers should consider investing in AR and VR property touring, digital communication channels, and marketing efforts that move beyond a regional audience.
If you work in real estate, now’s the time to ask yourself: “What are millennials looking for in real estate transactions? And moreover, how can you accommodate their needs and expectations?” This article argues for a tech-enabled, transparent, convenient approach that facilitates remote buying.