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How Millennials are Changing the Real Estate Market
Posted on: November 10, 2016 by Newmark Insurance
Millennials make up a staggering 32 percent of home buyers in today’s market. As the largest portion of the homebuying market, this means that real estate agents must learn to adapt to millennial’s needs in order to successfully sell to them. As millennials continue to shape the economy and influence the market, real estate agents should equip themselves with the right Real Estate E&O Insurance and consider the following to understand how millennials are effecting the market.
#1: Millennials prefer to rent.
The millennial generation favors renting over buying property for a number of reasons. They wait to commit to homes; desire to live in trendier, more expensive areas; or want the freedom to pick up and go with relative ease. A survey found that 10 percent of millennials don’t feel ready to manage a property and prefer having a landlord to take care of maintenance issues, says RIS Media.
#2: They search for homes by themselves.
Approximately 50 percent of millennial home buyers found their home themselves using the internet as opposed to 31 percent who used an agent, says the article. While they still need an agent to complete the sale, the search is done independently. Therefore, agents need to update their listing with plenty of pictures and even virtual tours to attract millennial business.
#3: Millennials want small, efficient spaces.
Less space means more financial stability for these young buyers. Agents should focus on multi-functional spaces and energy-efficient components of a space to attract millennials.
#4: They don’t shop for agents.
Most millennials use a referral from a friend, family member, or neighbor. Further, the vast majority only contact one agent for assistance with selling their homes. Millennials cite honesty, trustworthiness, and reputation as the three most important qualities in a professional real estate agent. As 68 percent of millennials who use a real estate agent interview only one agent, they are often willing to stick with an agent they trust, even if there are cheaper options out there, says the article. Therefore, ask for reviews and spread the word about your business to locals via social media and word of mouth!
At NewMark Insurance Services, we work with several carriers to ensure you get the best solutions for your needs at the best prices. Our products can be customized to protect against each of your business’ risk exposures. To learn more, contact us today at (855) 777-6549.