Although millennials have been historically slow to become homeowners, they make up a large and growing share of the housing market today. In part, this is due to simple math — many millennials have begun to approach middle age. Although they buy houses later in life than in previous generations, they are buying houses — and that means they’re an important segment of the market to target.
When you’re investing in properties and looking to make a piece of real estate appeal to buyers of a younger age, what can you do to attract millennials? Explore some of the following top tips before considering how you can develop a targeted strategy with help from Omid Akale with the Twin Cities Portfolio Group.
Price is Still a Major Consideration — Especially for Millennials
Even with a red-hot housing market where some buyers continue to pay over the asking price, it’s essential to recognize that isn't the norm. Some real estate professionals have even begun to use the word “bubble” to describe the current runaway demand.
With that in mind, it’s important to remember that millennials have typically built far less wealth than previous generations at this point in their lives. As a result, pricing properties well is essential to attracting them. Millennials may not want “cheap” homes, but they know how to tell when you’ve overvalued and overpriced a property.
Make the Updates That Make the Most Sense
Like every generation, millennials have their tastes and preferences when it comes to home design. If you plan to renovate or remodel the home to add new features, focus on those which are truly popular and useful — and not just expensive fads. Some ideas to include might be:
- Open-concept designs
- Additional natural light
- Energy-efficient design throughout the home
Invest your remodeling funds wisely to target upgrades that are likely to stay relevant.
Make Those Online Listings Pop
Online listings have been the primary way to reach buyers for years, but millennials especially have a discerning eye for poor listings. Inferior photos — or photo sets which deliberately obscure or avoid less attractive elements of the home — could drive someone away from your listing immediately. Do research into the terms millennials look for in home listings and get better results.
Understand Complex Financing Needs
Sellers who have rigid financing requirements probably aren’t as likely to attract millennial buyers. Flexibility in working with non-traditional loans or those who may be reliant on first-time home buying programs is worth your time when appealing to millennials. Carefully judge the acceptable level of risk for these investments and plan accordingly.
Have a Coherent Strategy and Stick To It
Ultimately, the most critical element of appealing to millennial buyers will be to harmonize the above approaches. Focusing too much or too little on any one element could lead to an unbalanced approach that doesn’t generate the results you want from your investments. By discussing your goals and other investment strategy requirements with a professional such as Omid Akale with TC Portfolio Group, you can take the first steps towards real estate success with confidence.