For those of you that have not read the Sunday Real Estate
section of The Arizona Republic, March 8, 2015, we would like to give
you the highlights of the article on the Millennial generation, why they aren’t
buying and what they want.
The 18 to 35 age group is not ready, not able, or not
convinced that home buying is a priority or a need. Many have high student loan
debt, have watched their parents lose money on their homes, and prefer to
remain flexible with job location. They are marrying later and delaying
childbirth which makes them perfect tenants for all of the upscale apartments
being built. Even with great lender programs geared to the first time buyer,
Millennials are not taking advantage of them.
When they do venture into the home buying market, they are
very specific regarding what they want. For those of you who have your homes on
the market or are considering doing so, here is what will appeal to the
Millennials:
1. Covered
closing costs. Because of their student debt, many have barely scraped together
a down payment but they do not have the cash for the closing costs.
2. A
home that is move-in ready. If they don’t have the money for closing costs,
they also do not have the cash to put into repairs or renovations. They will
ask for almost all of the inspection report items to be fixed but may take a
pass on the house if it needs all new bathrooms and kitchen.
3. An
open floor plan. This can mean the “great room” style or at least rooms that
could have multiple uses, i.e. the dining room can become an office. While
there isn’t much you can do about your floor plan, how you stage your home can
make a difference for the younger buyer.
4. Low-maintenance
living. You may have landscaped your front and back yards with lovely lawns and
plants but the Millennial will see the maintenance and the time required to
keep it looking good. Their weekends are not geared towards yard work or home
maintenance.
5. Location
might be up for grabs if they love the house. Many younger buyers are not
married to a neighborhood. They often select a home over the community and take
on a longer commute. They will take new builds in an area further out if it
means upgrades are already in place. Good schools, nearby restaurants, and any
kind of walkability often have priority for them so master-planned communities
work well.
The Millennials have also shown
that they plan to move more often than older generations have done. They tend
to sell their homes within 2-5 years to move on to either larger or homes in
another city. It seems that they are not ready to settle down for the 20-year
time frame of their parents. Once they marry and have children, they will most
likely see the Nomad lifestyle disadvantages, but that hasn’t yet happened.
So what is the take-away from this
information? If your home is an area that appeals to young professionals or
first-time buyers, get it ready to pull them in! We are not saying that you
should remodel or spend money on updates unless you have a 20-year old water
heater, HVAC, and roof. If you can’t replace, at least service and do any
repairs so that you can tell buyers they all work well. Plan to cover some or
all of the buyer’s closing costs, buy them a home warranty, and stage your home
(using your own belongings) to show space and versatility in the floor plan. When
you take the time to get your home ready to sell, it will appeal to all ages
not just the Millennials.
If you are considering selling and would like our help and advice,
please do not hesitate to call. We can help with everything from repair recommendations
to staging to the creative marketing it takes to bring in buyers of all ages!
