I often give advice to other real estate agents, and one thing that I think really makes a difference for me in my business is that I work with many people, but particularly I enjoy clients that are most like me. As a real estate agent who’s also considered a millennial, it’s no surprise, that I have a lot of millennial clients. In a market that’s currently dominated by first-time homeowners, this should be amazing news for me, and for anyone else who caters to Americans in their middle 20’s and 30’s. But what I’ve found is that many millennials are terrified of buying homes.
Here are a few reasons that millennials are scared of purchasing real estate and some answers to their objections:
Millennials are new to this whole “adulting” thing, and in just a few years they’ve gone from living in their parents homes and paying one or two bills like phone or internet, to having to pay for car insurance, health insurance, groceries, rent, gas, utilities, and more— not to mention student loans, which are at their highest numbers ever. They are fully aware that buying a home will increase the bills and bring things like lawn maintenance, homeowners insurance, and repair costs to the table. Most people fresh out of college have good educations and decent paying jobs, but there’s always the fear that they will lose their jobs and fall behind and lose the home. I normally point out to them that as long as they continue to save, invest, and not spend frivolously, they will be fine.
In general, millennials have commitment issues. Why shouldn’t they, when everything they’ve ever wanted in life has been available within seconds and old news weeks later? It makes sense not to commit when there are so many choices. I remind my millennial clients that even if they buy this house, there’s no reason they can’t sell it a year from now, three years from now, or five years from now. It’s never permanent. The best part is that they might make a profit flipping the home, in today’s rising market.
In an age where fake news is all over social media, and Google is just a click away— it’s no wonder that millennials are untrusting of people who claim to be “resources.” You can give them market value, comparisons, and your own recommendations until you’re blue in the face— but they’re still going to pull out their iPhones or tablets and look it up for themselves. I’m always prepared for this, and have the information they want already printed out or pulled up on your own computer to crush any objections.
Over 50% of homes in 2016 were sold to first-time homebuyers, so it’s important that I know how to make millennials feel at ease with their buying decisions. Let me know if you have any questions, and feel free to e-mail me or leave a comment below. I’m always available as your real-estate resource!
Chastin J. Miles is a full-service real estate agent specializing in Dallas real estate, brand management, and client representation in a comprehensive spectrum of classes including single-family residential, condos and developments, commercial real estate, and luxury leases.