The next wave of home buyers are flooding the real estate market, and they’re called millennials. According to the National Association of Realtors, they’re the largest demographic of homebuyers since baby boomers. Their arrival is shifting the real estate industry, and naturally, realtors have to adjust their approach if they want to do business with generation y.
The number one question on your mind as a realtor is likely, what do millennials look for in a home? Learning the answer to this question helps you understand their wants and needs, allows you to speak their language, and become a resource. Like the generation before them, millennials have different interests and motives than their parents, and a good realtor knows how to keep up.
If you’re struggling to tap into what millennials look for in a home, let Call Motivated Sellers be your resource! Read on to gain insight into the millennial homebuyer, and if you have questions, feel free to reach out to our team for a chat.
Few trends defy generations and ever-changing home trends, and one such example is a great location. Like the generation before them, millennials understand the importance of location. What millennials look for in a home is a property that is a short distance from things to do. It is a huge determining factor in where they decide to live. Because they enjoy a balance of culture and entertainment and safe neighborhoods with good schools, they’re more likely to be drawn to urban areas than the suburban sprawl.
Smart Home Capable
Another feature that millennials look for in a home is smart home technology. Millennials enjoy the convenience that technology brings and want to incorporate that into their everyday. After all, they’re the first generation to grow up with technology, making them connected like none other.
Having smart home capable technology like home security systems, garage door openers, lighting systems, and smart home speakers allow these homebuyers to monitor their homes from far away. When working with sellers, be sure to convince them to invest in smart home technology before their move, as it will not only appeal to what millennials look for in a home but also boost the property’s value.
An emerging trend amongst millennials is the desire for smaller homes, a departure from the large, multi-room, sprawling homes that their parents love. It’s even causing a bit of trouble for larger homes on the market. According to industry experts, millennials believe 1,700 square feet is enough space. To give you a little context, the average baby boomer looking to downsize vies for 1,900 square feet!
This is because until recently, millennials weren’t looking to buy homes. And now that homeownership is in the stars for them, they’re less interested in a status symbol and more preoccupied with finding a home that’s both affordable and convenient.
Open, Multifunctional Floor Plans
Millennials prefer open, multifunctional plans, especially ones where the kitchen, dining room, and living room areas, are connected. The open floor plan appeals to a millennial’s love for entertaining and fostering a sense of community, two things that are extremely important to them. This means millennials can interact with guests without being restricted to the living or dining room.
Additionally, these spaces also serve as a multifunctional space where things workout equipment may share space with the bedroom, which appeals to the practical aspect of what millennials look for in a home. When showing a home with this floor plan, be sure to highlight its versatility.
A surprising thing that millennials look for in a home is low maintenance. Although there is a percentage of millennials who don’t mind a home that needs some work, the vast majority prefer a newer home that requires less work to maintain. Nationwide Mortgage found that 48 percent of millennials would rather buy a new or nearly new home than spend the time and money on renovations.
And it’s not that renovating a home isn’t fun, but it can be costly, and many millennials are strapped for cash. The average millennial has $30,000 in student loans or credit card debt and minimal savings to spend.
Generation Y is well aware of the impact humans have on the environment, so naturally, as homeowners, they’re especially conscious about reducing their footprint. It doesn’t hurt that having an energy-efficient home also means lower energy bills throughout the years. In alignment with that goal, what millennials look for in a home are amenities like energy-efficient appliances, Low-E windows, LED lighting, seasonal insulation, and, if possible, solar panels.
It will mean brownie points for you, the realtor if you’re able to locate homes that are already renovated. However, if they’re not, no sweat, your customers will likely invest in the changes after moving in and budget the project into their costs.
According to the most recent U.S. Census data, more than 13 million people are working from home either temporarily or permanently due to the global COVID-19 pandemic. And now that people have settled into that reality, it’s created a new trend amongst millennial homebuyers: room for a home office.
It is important to separate work from home, and this extra space allows them to do that with ease. As previously mentioned, these multifunctional rooms’ appeal is that their use is based on the homeowner’s need, from a playroom or office to a spare bedroom or gaming area.
Call Motivated Sellers
Finding the perfect home for your millennial homebuyers can take some time, but we hope that our list of things millennials look for in a home can help make your hunt a little easier and yield successful results. Once you understand the needs and wants of your customers, selling becomes more manageable, too.
At Call Motivated Sellers, our focus is on helping you succeed. Whether it’s lending our cold calling services to help you streamline your process and identify qualified leads or guiding throughout your tenured real estate career. Just give us a call, and we’ll be at your service.
Are you interested in working with us or learning more about our services? Contact our team today, and let’s chat!