Christopher Rhodes of RE/MAX Yorba Linda gave a very interesting and informative Classification presentation this week. We learned that inventory is tight. The seller is in control with multiple offers on each home. “The nice stuff goes quickly.”
What I found most interesting was the information about the Millennials (born 80s to early 2000). They are slower to come into the housing market than prior generations. They have more education 1/3 have at least a four year degree (expensive schools means more debt). Many have lived through families losing homes during the crisis. The represent 32% of the home buying market nationally and are looking the purchase as an investment than a place to live for a long time. Many Millennials are getting married later and buying before marriage. They grew up with the internet so they handle the research themselves. They have more information about real estate and any other business than any prior generation.
How a property is positioned online is the key. Photos are very important. With doing their own research online they are not educated on making offers on overpriced homes so they simply discard it. They will wait for price drop instead of negotiating, thinking there are always more listings coming on line.
Days are over for agents showing five homes and asking clients which one they want to buy. What they want in a house:
- Open Floorplan
- Low Maintenance
- Move in Ready (Less interested in project than prior generations and since down payments can be a challenge they have no money for projects. “Connected” work life leads to less ability to spend a weekend on a project.)
Sellers should make inexpensive fixes:
- Front door hardware
- New Garage Door
Things Christopher has learned about Millennials: Every lead is an online lead Much more likely to go with the first provider they speak to because of research Hard to earn trust, but then you have them for life Only 6% of millennials in the US consider online advertising to be credible 95% of the millennials in the US consider friends the most credible source of product information.