Here’s what agents can do for millennials
When considering millennial buyers, agents most often think about the difficulty such buyers may have in qualifying for a home loan due to student loan debt or the lack of a deposit. However, another thing they need to bear in mind is that many young adults simply don’t know where to start when it comes to buying a home, and may just need a straight-talking “coach” to get them on their way up the property ladder.
Millennials (aged 15 to 30) obviously spend a lot of time online and with so much real estate information available online today, it’s easy to become overwhelmed and give up on the whole process.
Agents who want to secure their future “pipeline” of buyers really need to get to grips with this and provide some simple guidelines that will turn them into trusted advisers. In this way, they improve their chances of becoming the people who first-time buyers will most likely turn to when they decide to stop renting and become home-owners.
To start with, here are three basic concepts agents need to build into their communications with millennials:
If you think you can afford a home, get pre-approved for a home loan
Potential buyers need to assess their own financial ability, and a good way to do that is to seek pre-approval from a reputable mortgage originator like BetterLife Home Loans.
The purpose of this process is to determine how much they are actually eligible to borrow, and ultimately, how much they can comfortably afford to spend (including their deposit). This is not only a time-saver for both buyers and estate agents, but also gives buyers an advantage in a competitive market because it lets sellers know that they are serious purchasers with every likelihood of being able to get a home loan.
There are big benefits in paying a deposit
It is of course possible to obtain a loan for 100% of the purchase price, but first-time buyers need to understand that it is really worth saving up a substantial deposit before they commit to a purchase.
The more money they have to invest in their own homes, the faster the loan application process will go and the more likely they are to obtain a preferential interest rate that will mean lower monthly bond repayments. Also, the bigger their initial equity, the greater the likelihood that they will be able to pay off their loan earlier, which will mean even more savings.
Before you go househunting, think about your lifestyle
Millennials generally have a very different lifestyle to that of their parents, and the chances are that they will need homes that are very different to those they grew up in.
The most important thing is to think about where they and their families spend the most time – such as work, school, shops and the gym – and concentrate their attention on areas where they can live as close as possible to all these and avoid long commutes. After that, they should think carefully about what type of home they would prefer – an apartment, a townhouse or a stand-alone house with a garden – and how much space they need. The more specific they can be, the more likely agents are to be able to match them to their perfect property.
As an agent, understanding the different kinds of clientèle you deal with on a daily basis is key to making successful sales and positioning yourself as someone buyers will consider reliable, knowledgeable and helpful.