The National Association of Realtors (NAR) recently published their 2022 Home Buyer and Seller Generational Trends Report. Here are some highlights and tips to help you make the most out of the evolving home market.
Millennials make up 43% of homebuyers. That’s right, almost half of the current market belongs to millennials at the moment, both young (23–31) and old (32–41). Getting connected with millennials is one of the best ways to boost your business.
65% of millennials found the home they purchased on the internet. These numbers are higher for younger than older millennials, but overall show a trend that internet savvy and presence is a must to capture this audience. Many of these future buyers are active on social media. So, go to where the people are, and get connected.
87% of millennial buyers purchased their home through an agent. The demand for real estate agents is on the rise, and millennials are specifically looking for you. You can’t get a better opportunity than that to find engaged, interested buyers. But with increased demand comes more opportunity for those who stand out from the crowd, so make sure to keep an eye on what your competition is doing and figure out how to do it better or add a twist that’s uniquely you. See the below for a further tip on how to stand out as an expert to a millennial crowd.
Millennials are looking for an agent who negotiates well and can make paperwork easy. If you want happy and loyal customers, make sure they know you are doing everything you can to give them the best deal every step of the way. Then, develop the skill to quickly analyze and simplify the huge amount of paperwork borrowers have to go through, make it easy for them, and you will become their best friend—and they’ll pay you more for it. “While young buyers use new tech tools, they also use real estate agents at higher rates then other buyers to help find the right home and negotiate the terms of the transaction” (Jessica Lautz, NAR’s VP of demographics and behavioral insights).
Buyers are loyal to great service. 89% of borrowers in NAR’s study—not just millennials—said that they would recommend their agent for future services. This creates two needs for you when you get clients. First, give them above and beyond service, an experience that they will never forget. Second, make it easy for your clients to recommend you to their friends. For many it’s as easy as giving a magnet with their name and number on it. Once it’s stuck on their fridge they may never have to search for an agent again.
Debt continues to be a significant barrier. Among the generations, younger millennials had the highest share of student debt, with a median amount of $28,000. In addition, 27% of younger millennials cited saving for the down payment as the most challenging step in homebuying. If you want to make homebuying easy and smooth for these buyers, you need to be aware of homebuyer assistance programs to help your borrowers purchase a home. At the top of this list should be CBC Mortgage Agency’s Chenoa Fund, a down payment assistance program that is easy to qualify for and provides forgivable and repayable down payment assistance loans.
Check out NAR’s article directly to get more information about the market that might transform how you do business. To learn more about Chenoa Fund, visit www.ChenoaFund.org.
CBC Mortgage Agency™ – NMLS 1186381
For licensing information, go to www.nmlsconsumeraccess.org.
Illinois Residential Mortgage License #MB.6761292. Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 – 1-888-473-4858. Georgia Residential Mortgage Licensee, License # 1186381