Millennials have had a lot of struggles when it comes to the housing market. Those from ages 22-37 fear the housing market, and rightfully so when you consider the time they came into adulthood. Millennials witnessed firsthand the subprime mortgage crisis displaying just how irresponsible bankers had been. So how do we get past this fear and help millennials enter the housing market?
Transparency
The first thing millennials look for is transparency when it comes to the home buying process. According to a recent study by Even Financial. “While 60% of Millennials indicate that they would love nothing more than to trust their bank and share a partnership/friendship relationship, more than a third of those surveyed would describe their current bank as closer to a “used car salesman” or “aggressor” than a friend.” So, what should you do? Be open and honest with millennials, give them a full explanation of what is happening and what steps they need to take for home buying success.
Close the Generation Gap
Previous generations had a much different financial prospect than millennials today. The Economist points out that “When baby boomers hit a median age of 35 in 1990, they owned nearly one-third of American real estate by value. In 2019, the millennial generation, with a median age of 31, owned just 4 percent.” So why is that? Rising costs in home prices, medical costs, income inequality, and ever-present student loan debt means that millennials do not have as much to spare on investing as previous generations. To truly help millennials they don’t need somebody expecting them to follow the same path as their parents and grandparents. It is important to listen and gauge what goals they have otherwise, you’ll end up alienating those you are trying to aid.
TLC
Millennial homebuyers, while hesitant are not entirely opposed to home buying. In fact, according to a recent Realtor.com article millennials are expected to make up 50% of all new mortgages in 2020. So, what does it take to help a millennial enter the real estate market comfortably?
1. Make Them Feel Safe
While obviously nothing is guaranteed explaining how their money is safe in real estate can give them some peace of mind. By going over projected home values in an environment that is comfortable to them you are enabling them to feel more at ease with the process. Be able and willing to collaborate with them. By answering any questions, they have you are making them more comfortable with the home buying process
2. Transparency
Be open and honest with them about what can be expected. Is there a reason this form needs to be filled out? Explain why you are doing things the way you are. Offer as many resources as possible so they can do their own research.
3. Options
Go over what choices they have. Helping millennials weigh the pros and cons. Go over contracts clearly so they understand what choices are available to them. Let them know everything that is available to them. Explain why a fixed rate may be better for them than an adjustable-rate based on their personal situation and preferences.
4. Empowerment
Everybody wants to feel like they have made the best decision for themselves. And the easiest way to empower somebody is to give them knowledge. If you have done all the previous steps then you have most certainly done that. But it doesn’t end there. Give them tips and resources to help new homeowners. What you do after the sale is just as important as what you do before. Especially when word of mouth is so important in real estate.
Millennials have had it rough entering the housing market. We are now in a time where they are going to be more active than ever. 2020 is going to be a great time for millennials to buy a home. While the struggles preventing them are still there the market is changing just enough to help them make homeownership a reality.
I am passionate about Real Estate and
eager to answer all of your real estate questions! Text or Call me
at 360-880-2356 or email me
directly to ask about Buying, Selling or Investing in today's
Real Estate Market - serving Lewis County & Thurston County, WA.
Janet
Simons |
Certified Residential Specialist | Real
Estate Broker
Mountain Valley Real Estate
We’ve all seen the commercials with the couple on a front porch saying “Our house sat on the market for a year. Then we listed our home ourselves and sold within days.” It’s the same story over and over, but is it really true? The rise in iBuyers has left many people wondering “Is that right for me?” Before jumping into why iBuyers are absolutely not for everybody, it is important to know exactly what an iBuyer is and is not.
already be purchased for up to 7% of what would be a fair price, you will pay up to 10% of the selling price in fees. And the costs of using an iBuyer are still not complete.
We all want to make sure we are living or are going to be living in a safe area. It is important to think about, especially now that children are starting to go back to school. There are various resources you can use to scope out a potential neighborhood or learn more about your own. Here are some of the best resources available:
Local Market Conditions
Unrealistic Home Buyers
Home Prices
Why My House?
Color of the Year
Bold Black
We’ve all been there either the washer dies and no amount of resuscitation can fix it, or the freezer has suddenly turned your house into a pool. Or even a new house needing all new appliances, it is hard to know exactly where to start! How do you find the best brands at the best prices? It’s a daunting task just to get started but here are some tips to help.
This is the part most people tend to dread when it comes to appliance shopping. There are so many places to look at reviews, and in some ways, it feels like a guessing game when it comes to what to get. The first place I would look is the website where you plan to purchase your appliance or appliances from. Where I live that narrows your store down to one option, for others there could be multiple places. But with your criteria in hand, you are able to quickly sort through what will and won’t work for you. Once you have a short list of options, start looking over reviews, even if you don’t plan to buy from that specific store the reviews are an invaluable resource for you. Other options for reviews would be Consumer Reports, J.D. Power, or Consumer Affairs website are all great options for reviews as well.
According to Zillow: “The Zestimate® home valuation is Zillow’s estimated market value, computed using a proprietary formula. It is not an appraisal. It is a starting point in determining a home’s value. The Zestimate is calculated from public and user-submitted data, taking into account special features, location, and market conditions.” While this sounds like the data collected would be accurate, Zillow’s proprietary formula often leaves people scratching their heads.
Inaccurate Information
Upgrades
When did Christmas go from the most wonderful time of the year to the most stressful? Between the parties, the gifts, wrapping, travel, and sheer exhaustion it is easy to focus more on what is next on the calendar instead of enjoying the time spend with friends and family. How did Christmas lose its wonder and how do we get it back?
When preparing for Christmas it is easy to focus on the idea that everything needs to be perfect. The children NEED to have certain outfits on so the photos will look good, they must be frilly and stain free and you and your spouse must coordinate too. The food HAS to be perfectly cooked and has nothing but everybody’s favorites. The decorations MUST look as though they are straight out of a magazine. Why do we put all of that pressure on ourselves? I can just about guarantee you the only thing the kids are wondering is when they can take off the itchy dress and when can they open presents.
Life around the holidays can and will get chaotic. There are always last-minute gifts and a change of plans. Why not instead of letting this throw your day off completely think of how excited you are to see the family member who called 5 minutes ago to see if they can stop by? In the grand scheme of things will sitting for an hour to catch up be the end of the world? Of course, there are always exceptions to every rule but for the most part isn’t it more important to remember to enjoy the experiences life offers?