Making a connection with millennial clients [VIDEO]
The talk of the housing industry is that millennials are finally ready to sweep in, save the day and mark the beginning of the end of the recovery.
While the stage has yet to be properly set for a millennial entrance, research indicates that many people born in 1981 or later are nearly prepared to begin the home buying process, which means that businesses are going to have to make sure they’re ready to relate to the younger generation. Sure, student debt and still-tight credit access will make it tough for younger people interested in buying a home, but the limitations won’t stop every millennial from obtaining a home of his or her own.
Research indicates most millennials are eager to enter the housing market
Half of the millennials surveyed in a recent TD Bank study indicated that they plan on buying a home within the next year. The bank’s third annual Mortgage Service Index also found that one-third of millennials consider now a good time to begin looking into options within the housing market, and for many, this could be a totally new experience.
While 27 percent of the respondents born in 1981 or later considered mortgage rates to be an obstacle, and 25 percent saw their non-mortgage debts as an issue, neither of these served as the biggest problem for millennials. The most common obstacle – as indicated by 32 percent of millennial respondents, versus 20 percent of all persons surveyed - is a lack of knowledge about the financial process of buying a home.
How to handle the incoming millennial wave
A generation burdened by student debt and armed with a digital arsenal of research tools is headed toward the housing market - and lenders, title insurance agents, real estate experts and other home professionals are going to have to update their processes for the incoming millennial wave.
Be ready for them to take their time with whatever deal you’re offering them. With a phone in their pocket, a laptop in their apartment and maybe a tablet in the car, these young home buyers are going to be ready to read up on your competitors’ every free second they have. Understanding that, and how to work with customers readily engaged in research – studies indicate many consumers don’t review their options – could be a new experience for many housing professionals.
Although they’re probably going to be researching their options, first time home buyers may not understand what they’re looking at as well as seasoned market navigators. That’s why it is important to educate and assist millennial consumers during the buying and closing processes. By showing them that you’re willing to work with less-experienced customers, you’ll show that you’re a trustworthy person, which is important to this generation.
Many are already strapped with a heavy load of student debt, a number of whom witnessed their parents’ own struggles during the Recession and aren’t so willing to trust any sort of financial professional. Showing you’re patient and there to help will make you the hippest housing professional to surf the incoming millennial wave.
By: Equity National March 17, 2015 Title