New Generation Of Home Buyers Have Very Different Criteria.

Y Ask Gen-Y? New NAR Report Highlights Emerging Generational Trends With the downtown of the Great Recession more or less behind us, home sales have stabilized. But the profile of the buyer market is quite a bit different than it was six or seven years ago. Millennials - those young adults roughly categorized as ages 24-34 (or so), also known as Gen Y - make up the largest segment of the buyer market, and with that trend comes new realities that Realtors will have to learn to navigate in order to win a portion of this market. One of the handiest resources currently out there is the National Association of Realtors' Home Buyer and Seller Generational Trends Report for 2015. Published in mid-March, it's 115 pages of facts and graphs that illustrate the current market. You can read or download the entire valuable report.  A few highlights: It should hearten Realtors that Gen Y, despite witnessing and largely understanding the economic downturn and carrying record amounts of student debt, still feel buying a home is a worthwhile investment. Long-term low interest rates and the potential for equity play into the decision to buy. Younger buyers are much more likely to find the house they want to purchase online, though they are still more likely to contact a Realtor to facilitate a showing and the negotiation/purchasing process. The lesson: If you don't have a robust online presence for your listings, you should. A younger couple is much more likely to be unmarried, which may or may not complicate the loan application process. If nothing else, be mindful of the fact so you don't have any awkward moments where you ask a couple how long they've been married and they have to say "we're not." Self-evidently, younger buyers are more likely to be first-time buyers, and new to the process. Handle them with patience and be a trusted advisor through the process. A happy first-time customer could be a customer for life, and make years' worth of referrals. At the very least, be familiar with the loan process, and know they are less likely (though not necessarily UN-likely) to have significant cash handy for a down payment. Gen Y buyers are more likely to purchase a previously lived in home. There are several reasons for this, the most obvious of which is affordability. However, younger buyers are more likely than older buyers to value historic properties, fixer-uppers, and architectural quirks. They are also significantly more likely to prefer to live in urban areas, with access to a town or city's main social and transportation hubs, rather than in a newly-constructed suburb. While these trends line up across generations, Millennials are most likely to choose a neighborhood based on quality/reputation, its proximity to their job, and the overall affordability of the homes. Keep an eye on such neighborhoods for when young clients come calling. Compared to other generations, there seem to be two sweet spots in pricing for Millennial buyers: The $125,000 to $150,000 range, and the $200,000 to $225,000 range. Their interest falls of fairly dramatically above $250,000. This isn't part of the report, but Millennials are also far more likely to want a home that is ready for technology; smart thermostats, lots of electrical outlets and other digital features will be a big sell. They're also less likely to want a formal dining room or living area; open space and multi-use rooms are the norm. When walking through a home for a younger buyer, be sure to think in terms of what they may want a room to be used for, not just what the current or former owner may have done. We could go on for pages on this report, but it is available for you to read online at the National Board of Realtors' website. It's pretty invaluable, and features great information on four different age brackets. Link For more information Contact Jerry Gusman, The Gusman Group 888-21304208 jerryggroup@aol.com