Expert Luke Babich shares his top tips for agents looking to build relationships with millennial homebuyers. Your marketing messages should be different for each audience, and these tips should help you connect quickly for optimal results with this tech-savvy generation.
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Millennials are the largest segment of home buyersmakeup 43% of buyers on the market, according to the National Association of Realtors. Millennials are a powerful force in the real estate industry, but they’re not your grandparents’ generation. They won’t be swayed by the same types of sales tactics.
Millennial homebuyers look to you for advice, information and respect as they navigate the choppy waters of home ownership. It’s up to you to create the safe space they need to make this important life change.
Millennials looking for a home
Millennial homebuyers don’t mind rising prices and rising interest rates. In fact, they compose now a larger portion of the homebuyer market segment than any other generation.
Millennials tend to make major life changes, such as getting married and having children, at older ages, so their potential impact on the real estate market will only grow as they get older.
A majority of millennial home buyers are willing to take more risks to get the home they want. Around 90% would buy a house without seeing itand 82% would buy a property in need of major repairs.
Moreover, millennials aren’t afraid to stretch their budget to buy their dream home, and 80% would offer more than the asking price.
It’s safe to say that although rising interest rates have cooled the market slightly, demand for millennial housing remains strong.
The key to capturing this market it’s knowing how to get your message across.
Marketing to Generation Y
Gone are the days when an inscription on the multiple listing service and a bundle of compositions would attract an interested buyer. Millennials are discerning consumers who grew up in a digital space awash with constant messages and noise.
To help this generation of buyers, you’ll need to stand out by following these eight tips.
Tip #1: Understand the needs of millennials
Most homebuyers prefer new homes or recently remodeled older homes, but millennials won’t hesitate to go to a repairman. The generation has a heavy debt burden, and they tend to want smaller spaces that require less maintenance.
Millennials are also looking for walkability, even in spaces that wouldn’t be considered urban.
Tip #2: Focus on Education
Although your expertise as a real estate agent is essential for build trust for the millennial homebuyer, this generation likes to do it themselves.
Add simple “how to” articles to your website or social media accounts is free, saves time and adds value to your services. Consider linking to topics such as:
- How to finance a house
- How to Apply for a Mortgage
- How the home buying process works
Tip #3: Social media is important
Social media has evolved from a platform for posting photos of vacations and favorite meals to a place where brands can build relationships with consumers. Whether on Facebook, ICT TacTwitter or Pinterest, social media is invaluable when it comes to marketing to millennials.
Millennials are looking for strong representation on social media, both for services and for inspiration. Post photos and videos of floor plans on Instagram and Youtubequick check-ins on TikTok and links to informative articles on the home buying process on Facebook.
The goal is not to overwhelm consumers with ads and self-promotion. Social media for millennials is all about building trust and one-on-one relationships with a reliable, real, and relatable company or person. It takes longer to do, but the effects last longer.
Tip #4: Don’t neglect the visuals
A few vague photographs or a hasty analysis of the floor plan will not suffice. The COVID-19 pandemic has opened up the possibility of virtual video tours and self-guided tours. At the very least, your listing should have professional photography that showcases a perfectly staged property.
Remember that millennial buyers aren’t afraid to buy a property without seeing it. Give them the tools they need to make that decision.
Tip #5: Don’t call. Text
Millennials are the texting generation. It is their preferred means of communication. Use a real estate texting app to easily send photos and listing information. If you can’t find an app that meets your needs, build one.
These apps can also make it easier to find available homes or set filters for price, neighborhood, and features they’re looking for.
Tip #6: Make your emails count
Millennials didn’t give up E-mail entirely, but they have little patience for non-engaging content to block their inbox.
Take the time to carefully craft subject lines that stand out from the other marketing materials they receive. Make sure:
- Use visuals, such as emojis, even in the subject line
- Keep the email short and to the point
- Include a call to action at the end
Tip #7: Watch your tone
Millennials want an authoritative realtor who knows what they’re talking about and can champion them at the negotiation table.
However, they are not interested in muffled and condescending voices. Keep the tone of your Communication and light marketing materials without being too casual.
Tip #8: Solicit and Respond to Online Reviews
A Bright Local survey in 2021 found that 93% of millennials rely on reviews to make decisions about purchases big and small. After each sale, ask for a review. Send a link to your company’s review site or ask them to review you online.
Worried about a bad review? It can be tricky, especially if you’re anticipating a good one. Don’t leave a bad review hanging in the wind. Millennials want to see how you handle this kind of adversity.
- Thank the reviewer
- Apologize for their bad experience
- Encourage them to contact you directly to address their concerns
- Don’t chat online
The same Bright A local survey found that 57% of millennials wouldn’t use a business that didn’t respond to reviews, whether positive or negative. Remember, make money as a real estate agent is about building relationships with millennials. Take the time to respond to every review you receive.
Luke Babich is the CSO of Smart real estate in Saint Louis. Connect with him on Facebook or Twitter.