Contributing columnist
The numbe rsareinand millennials take the top spot as the largest group of recent home buyers in the U.S.
According to the 2017 National Association of Realtors Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers, millennials (people age 37 and younger) comprised 36 percent of recent home purchases.
Millennials are the largest generation in history after the baby boomers, and future housing demand will be driven by this generation.
Despite having a reputation of not wanting to put down roots, this generation still very much sees homeownership as part of the “American Dream.” Wha texactlyisthis age group hoping to gain from working with a Realtor when most of them are likel ytosta rt their home buying search online?
Getting information fromtheInternetisalot like trying to take a drink from a fire hydrant. Young buyers are looking to Real- tors to help them understand and interpret all this information, give them insights into everything that goes int otheh ome buying decision, and guide them through the process of preparing staterequired forms, arranging inspections, negotiating the purchase and closing costs, plus much more. Thisisthela rgest financial transaction of their lives, so they are looking for someo netheybelieveis honest and trustworthy.
This means that they are mostlikelytohiretheir Realtor based on a refer- ence from a friend or relative. As this is probably their first venture into the real estate market, a recommendation from mom or dad, or perhaps a good friend wh ojust went through the process, is going to carry more weight than any online reviews.
While millennials want to enter the market, this generation doesf ace some challenges on their path to homeownership. Twentyfour percent of millennials polled cited student loan debt as their main financial hurdle. That, along with the challenges of tight credit, limited inventory and rising interest rates, can limit the options and ability for young people to own.
These issues, however, aren’t changing young buyers’ attitudes about buying aho me. T hisgeneration truly appreciates the long-term benefits and economic security of homeownership; 86 percent polled say theyconsider their home purchase a good financial investmen t.T heyal so understand the issues currently affecting the market, and that they may have to be flexible to make owning their own home a reality.
Realtors know younger people often need to mak ecom promises to get into their new home and can help guide buyers to achieving their goal of owning their own prop- erty.
Desired size is sometimesnegot iable when buying a home, and most buyers are willing to make financial sacrifices if it means they can make this important investment in their future.
When finance sare tight, theknowledgefroma Realtor is essential when they explain the down payment assistance programs available through lending institutions. Plus, through the art o f negotiating , they may be able to help offset some upfront costs by working to get the sellers to cover closing costs.
If you or someone you know is a millennial looking to buy a house, working with a Realtor from Dayton Realtors is the first, best step toward achieving the American Dream of homeownership.