Nina Simone sang it best, "Its a new dawn, its a new day!" Are you feeling good about meeting the needs of the next generations entering the market place?!
According to Zillows consumer report, half of all buyers are under the age of 36. Although Millennial and Generation Z homeownership rates lag behind those of previous generations, there is a huge pool of potential buyers for real estate agents who can serve this demographic effectively.
To be successful with Millennials and Gen Z buyers, agents must become familiar with the younger generations’ comfort zones, priorities, challenges and communication preferences. Here are seven tips for agents who want to tap this potentially lucrative pool of buyers.
Seven tips for agents
1. Focus on their preferred Platforms – Today's First Time Homebuyer (FTHB) lives on Pinterest, Instagram, and Youtube. Consolidate the stats they want and post on your social media channels. Don’t forget to make it pretty!!! Don’t direct them to your website to scroll through endless photos and read lengthy copy descriptions. Share clear and concise property information on their preferred platform.
2. Think Rental Potential – Be ready with rental income analysis on top contending properties as you approach these FTHB’s.
48% of Millennials’ & of Gen Z buyers said that future rental potential was “highly important” only 29% of Gen X & 8%of baby boomers felt that way
3. Generate Online reviews – don’t wait until the transaction is over to ask for a review- ask your clients throughout the process how you are doing, and if they would be open to leaving a review.
4. Know your place- Being born into the digital world, today's FTHB’s are efficient multi-taskers and likely to have already educated themselves as much as possible before seeking your help. It is unlikely that they will be unfamiliar with the market conditions, or mortgage options. Don’t be condescending – they will have a good idea of what they want and are hiring you to make it happen.
Demonstrate your value in a way they will appreciate. Take care of the offline tasks they don't want to do and find cumbersome, such as:
a. Order inspections
b. Handle title
c. Handle all in between loops of communication
d. Facilitate negotiations without projecting stress onto them
5. Understand their challenges – Don’t be condescending or pretend to identify with them if you are of a different generation. Listen to what they share with you, and how they share it. You will have to ACTIVATE your highest level of emotional intelligence here.
6. ‘Give the people what they want’– keep in mind the timing of these two generations entering the buyer pool with other world event (ie. COVID-19). Focus on the features of the home or process they seem most alert to, or wary of.
7. Stay connected – If you did a good job, they will use you for the next transaction and recommend you others. That’s a bonus because these recommendations carry enormous weight with their peers. You will need to demonstrate your value as a trusted source of information.
Let's unpack that a bit:
Make sure they don’t feel like just another number. Make sure they feel seen and cared for as humans. Stay AWAY from the traditional sales-y type behaviors at all costs! Be your authentic self.
Educate them to make them feel like prepared and confident soon to be homeowners. Give them expertise they can share with their friends. Share content to boost their trust in you, and your credibility.
These are the generations that were raised into technology and instant communication- connection and multitasking. Their need for authentic (and timely) human connection could be your ticket to setting yourself apart from the pack.