Millennials Want to Buy — so What’s the Hold Up?
From time to time, you come across survey results that stop you in your tracks. In a recent and compelling article on the Scotsman Guide — “Help Homebuyers Reach New Heights” by CEO and founder of ValueInsured, Joe Melendez — four interesting metrics were cited:
- “In ValueInsured’s latest quarterly Modern Homebuyer Survey, 79% of millennials who don’t currently own a home want to buy one, and 75% would buy a home now if they could afford it”
- “A 2017 Redfin’s survey found that one homebuyer in three made a sales offer without visiting the prospective home. The most common sight-unseen buyers — 41% — were millennials, not experienced homebuyers. There also are reports of eager buyers waiving home inspection contingencies in an attempt to boost their chances in a bidding war.”
- “Trulia conducted a study that found 44% of Americans regret their real estate decisions. In addition, 71% of millennial homeowners regret the home they bought. Some of them could be the same buyers who made home offers sight unseen…Trulia also learned that one American homeowner in five (21%) said their real estate purchases are now holding them back from purchasing something else.”
- “The nation’s household debt this past fourth quarter grew at the fastest pace since fourth-quarter 2007, which was during the tail end of the housing bubble.”
These numbers provide insight into millennials now actively shopping for their first home. The 79% drives this point home — pun intended. Millennials want to buy now! The fact that 75% would buy if they had the resources to do so underscores not only the need for wage increases, but the impact of student debt on their finances.
The Redfin survey in number two reflects the tight housing market conditions millennials are facing. Maybe it’s not surprising that a generation that has shopped online their entire life would bid on a house they haven’t seen? Buying sight-unseen and skipping home inspections are a recipe for disaster, especially considering the Trulia survey results in number three. Not only are some Millennials regretting their purchase, those purchases are preventing them from buying.
Finally, and maybe most alarming, is the rate in which the nation’s household debt is increasing. Sadly, credit card debt on top of student loan debt could hold back an entire generation from owning their own home.
When it comes to marketing your services to millennials, it’s important to take the time needed to educate them about the home buying process. It’s easy to be enticed by a quick sale, particularly in this market. But, the last thing you want is dissatisfied customers. Sure, maybe they wanted to bid sight-unseen, buy a home they were less-than-happy with, or skip an inspection that would have uncovered serious and expensive structural defects.
But when it comes to referrals who do you think they’ll blame?