Millennials are quickly becoming one of the dominant home buying groups. But, for most Millennials buying a home is something they have never done before. Selling to Millennials can be challenging. Having grown up on social media like Pinterest they may have unrealistic expectations about what their budget will buy in a high demand area. Often they are expecting to be able to buy homes that have many luxury touches and a lot of square footage when their budget might not be able to give them that.
When you are working with Millennials that are purchasing their first homes here are some tips that will help you communicate more effectively with them and make sure that they have realistic expectations of what their budget will buy in the area:
Have A Talk before Looking At Houses
It is a good idea to sit down with your millennial buyer before you start touring homes. Ask them what they’re looking for in a home. Then ask them to prioritize what they need over what they want. That way they will be more open to seeing the properties in their budget. Stress the importance of a starter home and remind them that they can customize their home over time to make it their dream home. If they have a low budget for a new home stress the advantages of buying an older home that they can update the way they want.
Talk About Finances
Millennial buyers might not truly understand the financial process of buying a home. One survey found that millennial buyers were surprised at how long it actually takes to buy a home. Remember that their generation is used to instant gratification and that this is probably the first big purchase they’ve ever made. Go over the mortgage process and be sure they understand the various steps in the process. If they have a good grasp of the process they are less likely to become anxious about how long the process takes.
The median age of Millennial buyers is 25. Therefore, they probably do not have a lot of experience with complicated financial matters like a mortgage. Taking some time to see how much they know about the process and educating them about things like mortgage payments and insurance is going to pay off in the end. When they understand the process fully they will be able to make a more informed decision when choosing a home.
Stress The Possibilities
Even though your millennial buyers might not be able to afford a luxury home, they should still be excited to purchase a home. When you are showing them houses in their price range be sure that you talk up the lovely features of the home and how they can customize it bit by bit. Once the buyers see the possibilities for an Edmonton Real Estate they will be more willing to choose a home that’s in their budget even if it’s not their ideal home.
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