In a recent study by personal finance site CentSai, more than 2,000 respondents shared their thoughts and feelings about home ownership, borrowing, and real estate. The surprising result showed that Millennials are much more traditional than originally believed. This is great news for real estate agents.
Millennials want local agents
There are about 9 million Google results when you search for anything related to Millennials not wanting to buy a home. There are well written, detailed articles predicting and explaining the differences in Millennials and prior generations. They project doom and gloom scenarios where single family home prices tank as this population, which makes up the largest demographic in the United States, all flocks to apartments and condos in dense, urban areas. But it turns out, they might be wrong.
The CentSai survey found that “Three-quarters (75%) of respondents said that they would use a local real estate agent instead of an online agent.” This is great news for both homeowners and the entire real estate industry. Newer data suggests that Millennials are just waiting longer to buy homes, they are not abandoning the suburbs all together. The CentSai results prove that point.
Millennials want local lenders
In another surprising answer, Millennials indicated that they would rather go with a local lender than an online lender. “Almost three-quarters (71%) said they would choose a local lender,” says CentSai. Compared to the general population, where Fannie Mae found that 69% of the general population would file a mortgage application online, Millennials are even more likely to go with a local lender.
Many Millennials show a preference for local financial institutions. TheStreet.com reports that Millennials are turning to credit unions over banks, and it would make sense that their borrowing habits follow suit. Agents, make sure you have good relationships with local credit unions so you can refer clients looking to borrow!
They will start their search online
While Millennials will buy their homes with the help of a local agent, the real estate search has changed dramatically with the rise of MLS real estate apps. 91% of Millennials plan to use the internet or an app as a tool in searching for a home.
I am a Millennial myself, and this is true for me. I am currently under contract to buy a new home, and I found the house myself online. But when it came time for a tour and an offer, we went with a friend who is a local real estate agent in Southern California.
Over half of Millennials plan to buy a home in the next two years, so get ready
To end on a happy note, real estate agents should get ready for a fresh wave of new business. 56% of Millennials indicate they plan to buy a home in the next two years. Of the remaining, 68% said they would buy a home if funds were not a factor. Most Millennials DO want to buy a home.
As an agent, you are in the best position to help these Millennials success in their dream of buying a home. Join us here at AgentHarvest to ensure locals can find you. We have a listing of trusted, vetted agents like you around the country that home buyers can look to without worry. We’re ready to work with you. Join us today!