What millennial buyers want
Category Property news
The term Millennial refers to anyone born between 1981 and 1997. This also means that the older members of this generation are around 37 or 38 years old and are prime candidates to buy. Millennials make up a significant segment of the market but are often misunderstood by the real estate sector. As the generation with the keys to the future, it is important to understand what Millennials want and why it is important to them.
Mike Greeff, CEO of Greeff Christie's International Real Estate, offers his insight on Millennials in the property market, "Millennials are a very important sector of the property market and the economy as a whole. The way the real estate sector communicates with them has to be different as they are the 'poster children' of the information age. They have very specific wants and are passionate about their beliefs. They command a sizable percentage of the economy's spending power and have 'disrupted' the way the economy works in revolutionary ways. In order for the real estate sector to build a meaningful, long-lasting relationship with Millennials it is imperative that we take the time to add real value to their lives."
Millennials are the first generation of society to be digitally native and are heavily reliant on technology to manage their lives and decision-making processes. Millennials are the most likely of all the generations to refer to the internet and online reviews prior to deciding. Social media channels like Instagram, Pinterest, Snapchat, WhatsApp, Facebook and Twitter are all ways that this generation assimilates information. Information via technology is a prerequisite for successful communication, with quick and efficient response times being almost equally important to the process. Millennials thrive on communication that is quick, easy and efficient. This possibly stems from growing up in an instant satisfaction age. Their interaction with the real estate sector cannot be any different. Another critical factor to note would be the tone of voice used by organisations in their communication with this generation. There needs to be an active effort to speak with them and not to them. Real estate professionals need to be seen as performing an advisory role through the property buying process while at the same time providing insight and information in a way that is easy to understand and adds significant value to the interaction.
So, what are Millennials looking for? Like every other generational segment, price is a very significant factor. Millennials don't mind spending more on what they want, provided it is what they actually want. Property should offer convenience in terms of commuting easily to work and back as well as being in proximity to essential lifestyle amenities. They are looking for modern fittings and fixtures, in a home that is versatile enough to adapt to their needs and personalities. They will almost always choose quality over size and are experience-driven in terms of their lifestyle choices. Low maintenance is the order of the day with most Millennials viewing home maintenance as an unnecessary waste of the most precious commodity, time. They would rather have the upkeep of a home outsourced or taken care of as part of the rental or lease arrangement. Homes must be energy and water efficient and this can either make or break a deal with a Millennial buyer.
Last, and perhaps most important of all, is that the Millennial buyer expects their home to be smart. Pre-installed connections for satellite television and fibre optic internet lines will definitely score points as this is the generation that is most in touch with the internet of things.
Winning over the Millennial buyer is not as difficult as you might imagine. Real estate professionals should be willing to help them understand the process and what goes on during each step. An agent should assist them with the financial aspects of the process as there may be costs that they have not taken into consideration or assist them in finding good financing options for their first home. Many Millennials use their savings as the deposit for their first home which automatically means that their finances are limited and that astute financial advice would be appreciated by them. This willingness to help and offer value is what wins over the Millennial buyer and creates loyalty as well as brand equity. Millennial buyers want to be able to make informed choices throughout their decision-making process. Most Millennials are loyal to a brand based on the ideals and philosophy of that brand. They are more likely to remain loyal to the brand provided that the brand provides them with a good customer service experience. As a real estate professional, you not only represent your company and it's brand promise but also your personal brand that keeps clients loyal and helps forge long-term, meaningful relationships.
The Millennial market may be tricky to understand for members of the other generations, but their needs are easy enough to satisfy. Like any other target segment, they appreciate agents that add value to their lives and offer personalised, professional service.
Author: Greeff
