in this chapter: >the millennial buyer >the real estate transaction >business strategies

In this chapter:

> The Millennial buyer> The real estate transaction> Business strategies> Unique considerations

3. Millennials

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The Millennial Buyer

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• Virtual environment is standard

• Obtain information about home-buying process from:

– New media sites/friends

– Television

The Millennial Buyer

• No standard lifestyle:– Not married and/or without children

– Alternative lifestyles the norm

– Families are broader communities

– Rapid career change

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The Millennial Buyer: Characteristics

• Hyper connected

• Multitaskers

• Apt to crowdsourcing

• Socially oriented

• Optimistic

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The Millennial Buyer: Expectations

• Transparency• Demonstrate value• Professionalism• Brutal honesty• Consumer centric• Educator• Proficient in technology

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Millennial Myths

• Impatient or marginalizing of your time

• Too casual• Self centered

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Ownership Goals

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Ownership Goals

• Want lifestyle not home• Place emphasis on

community• Appreciate new

features/prone to upgrade

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Buyer Counseling

• Change your mindset to a customer-centric business

• Understand Millennial mindset

• Attract e-lurkers

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Buyer Counseling

• Focus on information dissemination and transparency

• Let them be active participant• Provide immediate feedback• Remember: interview process is real-time

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Buyer Counseling

• Meet face-to-face first • Help align expectations

to reality• Use casual and

conversational approach

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Buyer Counseling

• Be honest• Uncover pre-conceived

notions about process• Prove your value• Use visual representation

of process/timeline

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Sample Home-Buying Process and Timeline

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The Buyer Representation Agreement

• Approach discussion carefully• Provide thorough explanation and benefits • Provide copies of relevant forms upon first

contact • Explain concept of agency at first in-person

meeting

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The Buyer Representation Agreement

• Ensure they are ready, able, and willing to buy

• Show value and action instead of sales pitch

• Follow state and local requirements

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Community and Home Features

• Proximity to restaurants, coffee shops, bars, restaurants, shops, dog parks, gyms, and so forth

• Home office• Open concept

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Community and Home Features

• Outdoor space• Fenced in yard (pets)• Storage• Energy-efficient appliances • Resale considerations

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Negotiating

• Set expectations• Give as much information

and explanation as possible

• Show MLS comps

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Negotiating

• Don’t discount anything, but provide additional insights and explanations

• State pros/cons of decision points

• Recognize emotional component

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Financing

• Serve as traffic controller

• Explain importance

• Stress need to work with loan agent

• Provide resources

• Share factors that impact credit/financing

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Financing

• Explain timeframe• Stress need to budget for

home repairs and maintenance

• Remember that not all potential buyers are ready or able to buy

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Average Student Debt

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Closing

• Explain what to expect

• Share in excitement

• Closing gifts

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Closing Gifts That Keep on Giving

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Express your appreciation once a month, every other month, or every quarter.

This coupon book encourages users to be local

and shop locally.

Communication DOs

• Focus on quality, timing, and format• Get to the point• Embrace technology• Use Internet• Be sincere, authentic, relevant, valuable

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Communication DOs

• Customize your message• Respond within 2 hours• Communicate on their

terms• Send handwritten notes

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Communication DON’Ts

X Waste timeX Forget that face-to-face is best sometimesX Assume Millennials have home phone or TVX Fake familiarity with technologyX Send listings if they don’t fit needs and wantsX Assume anythingX Feel the need to act immediately, just respond

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Marketing

• Be an expert in the buyer • Appeal to their sense of being special

and unique• Avoid appearance of over-promising• Use multimedia• List all ways to get in touch

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Marketing

• Ensure Web site is up-to-date• Make it viral• Convey passion and excitement• Make it easy to get to know you• Provide valuable information• Appeal to Millennials’ parents

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Marketing

Source: Reprinted with permission of Heather Joubran, GRI, www.heathertherealtor.com.

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Marketing

Source: Reprinted with permission of Heather Joubran, GRI, www.heathertherealtor.com. 68

Networking

• Establish profiles on new media sites

• Join groups and become fans on Facebook

• Send relevant, content-rich links via Twitter

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Networking

• Be an expert for online real estate networking sites

• Write online articles for newspaper

• Start blog• Think “out of the box” to set

yourself apart

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Young Professionals Network (YPN)

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• Become familiar with YPN

• Subscribe to RSS feeds• Review creative

marketing ideas and contribute resources

• Reach out to your local network

UNIQUE CONSIDERATIONS

• Tax issues• Investment/estate

planning

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Recommend HouseLogic.com

• New consumer Web site

• Free resource• Can help buyers

increase and protect value of home

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