What do Millennial Home buyers Look for in a New Home?
Millennials, a young person who has reached adulthood around the year 2000, are now reaching the time in their life where they are buying houses and the older generation is now selling their homes to the younger generation.
The millennial generation is becoming a huge part of the housing market and according to a 2015 National Association of Realtors study, those born between the years 1980 and 2000 of comprise the largest segment of the buyer market.
Half of the millennial generation prefers turnkey properties, while the other half wants to invest sweat equity in order to put their personal stamp on the property.
While there seems to be a clear divide between wants in a house, many agents say that younger buyers of all stripes have a lot of the same “must-have” features on their lists. According to realtors there are 10 “must -haves” that will make it easier to sell to millennial home buyers.
1) Updated Kitchen and Bath: We all want to buy a home with new kitchen and bath fixtures, but new fixtures are especially important for today’s young, budget-conscious buyers.
2) Big Kitchen and Open Floor Plan: A generation ago, formal dining rooms may have been on every buyer’s wish list. But today there really isn’t much appeal to the formal dining room. Young buyers are also more attracted to an open floor plan, rather than a layout that compartmentalizes the home. Again, the reason has a lot to do with how younger homeowners entertain.
3) Home Office: More than 13 million Americans work from home. All signs point to that trend continuing, which makes a home office important for many buyers.
4) Good Location: Younger buyers tend to see location of a home differently than their parents who didn’t face high gas prices and traffic. Many younger buyers look for properties that are in proximity to public transportation. But there are young buyers, and then there are young buyers with children. The former group may prefer to be close to the action of the city, while the latter might prefer something more residential.
5) Low Maintenance: Most young buyers look for homes that are low maintenance with low-upkeep features such as wood floors (as opposed to carpet) and granite countertops are seen as positives for this generation because they’re both attractive and relatively hassle-free.
6) Technology: A generation ago, buyers didn’t care about a home’s technological capabilities. Either it had cable hookups or it didn’t. Today, buyers want to know about the home’s technology. They want to hear about cell service and Internet, not cable and telephone.
7) Energy Efficiency: With energy costs on the rise and growing interest in protecting the environment, young buyers are conscious of buying homes that are green.
8) The Cable TV Effect or Staging: Whether or not we admit it, we’ve all seen at least a few of the home shows on cable networks like TLC and HGTV. Those shows can be fun and informative, but they also do a lot to impact buyer expectations, so spend time staging a home before selling it.
9) Keep HOA Costs Down: Young buyers tend to get caught in a trap when gauging the affordability of condos or town homes. The asking price often fits their limited budgets, but HOA dues and the possibility of large assessments can sink the purchase.
10) Online Photos: If you’re serious about attracting young buyers, you need to think about how your property shows online. Looking at the data, it’s hard to underestimate the importance of a quality online listing. According to the most recent analysis from the National Association of Reality, 88% of buyers use the Internet to search for homes. By comparison, real estate agents were the second-most common resource for finding a home with 87% of buyers citing an agent’s help as a key factor. The most telling piece of data may be what happens after buyers see an online listing. According to the NAR, 64% of buyers in 2014 said they walked through a home after viewing the listing online, and 76% said they at least drove by the home because of an online ad.
For help with all your realty needs, contact Axelrod Realty today at 843-248-0000.