For the 9th year in a row, Better Homes & Gardens has conducted a study focusing on the home-purchasing habits of Millennials (meaning those prospective homebuyers aged 22-39 as of 2017).
The findings in this study might give real estate agents some good insight on how to sell to these young home buyers.
Millennials Want Their Slice of the American Dream
The study found that 85% of responders view owning their own home as an integral part of living their American Dream. However, they also have a very practical approach to homeownership.
Jill Waage, Better Homes & Gardens’ Editorial Director of Digital Content and Products, says that “Millennial homeowners are focused on building equity – not debt.”
Appeal to their desire to escape the tyranny of landlords and leases while focusing on the equity-building opportunities they’d miss if they continued to rent.
Know that many young people in this country are already inundated with debt in the form of student loans.
Therefore, it’s important to focus on the financially advantageous aspects of homeownership.
Be Willing to Wait With Millennials
According to the study’s findings, Millennial prospective homeowners are more likely to wait for a good deal and are also willing to live in fixer-uppers that are in need of some DIY work.
50% of Millennial homeowners said that their current home required some repair or remodel, ranging from minimal to considerable.
Likewise, 90% of respondents said that they were very or extremely interested in learning about home repair and home improvement projects (perhaps this can be attributed, at least in part, to the Millennial movement toward craft and thrift, spurred on by project-based websites like Pinterest and Etsy).
So Don’t Be Afraid to Show Them Some Fixer-Uppers
Millennials are especially motivated by stylish projects that add value to their homes, such as installing tile and light fixtures.
Their homeownership desires are modest.
On average, Millennials would prefer mid-sized homes around 2100 square feet, meaning you don’t usually have to worry about showing them McMansions that will stretch them far beyond their budget.
“It’s okay, but do you have anything with more hedge mazes?”
In short, according to Waage, they’re interested in homeownership on their own terms, based on their financial situations, their timeline, and their needs.
So with Millennials, be sure to forego big-budget homes and expensive renovations with patience, frugality, and practicality.
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