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Tuesday, November 5, 2024

millennials

    The media love to promote the idea that our millennial generation is so saddled by student debt that they require a bailout from the American taxpayer.

    Guess what? That’s hogwash.

    In reality, according to an Experian survey of student loan debt, Gen X and baby boomers, each hold more student loan debt than millennials.

    According to a different Experian survey, fewer than half of millennials (42 percent) claim they have never been denied credit. Most surprising is that “… 66 percent of millennials have no student debt at all,” claims the Boston Globe’s Beth Akers.

    More important, at least for real estate agents targeting millennial homebuyers, there are more than half a million millionaires in the millennial generation, and “… 93% of them have a net worth ranging from $1 to $2.49 million,” according to Mark Politi at LinkedIn.com, citing Coldwell Banker research.

    Recent Engel & Völkers Trend Report surveys find that many have a higher net worth. Of the Americans looking to buy a home for more than $3 million dollars (so-called “peak luxury buyers”), nearly 60% are members of the millennial generation.

    The number of younger millionaires will explode with the baby boomer inheritance wealth transfer over the next few decades. And according to the Coldwell Banker Global Luxury study, they will shop for high-end homes.

    How can you position yourself to be the go-to agent for this cohort?

    Carve out your space on social media

    Yes, it takes time, but engaging with others on social media is critical to attracting these luxury homebuyers. Remember, the millennial generation was our first to grow up online.

    However, not every social media platform is right for real estate agents. Keep your target market in mind in choosing where to market. For instance, millennials, born between 1977 to 1995, are, in 2023, between the ages of 28 and 46.

    Older 40+ millennials are the wealthiest, with the top 1% net worth at nearly $8 million. The top 1% in the 35 to 39 age group is worth more than $4 million. The youngest group’s top 1 percent is about $600,000, according to Levi Rasmussen at WallStreetSurvivor.com.

    These statistics should help when choosing which platform to use. Check its demographics to ensure it attracts your target audience.

    “There is often a misconception among luxury brands and marketers that digital marketing is incompatible with the luxury industry,” according to Rumble Romagnoli with Relevance, a “… luxury digital marketing agency.”

    People believe that UHNWIs [Ultra-High-Net-Worth Individuals] do not engage in social media, do not make online purchases, etc., or that if they do, it is only through super-exclusive social media sites or at private member’s clubs. This is absolutely not the case,” he concludes. 

    LinkedIn and Facebook are two of the best social media platforms an agent can use to target this audience. You might also consider Instagram ads, Romagnoli suggests.

    Concentrate on emphasizing your expertise in both the luxury market and the local real estate market in general.

    Erin Nicole Davis, citing an Engel & Volkers luxury homebuyer trend report, adds that “… real estate professionals who provide a personalized, high-touch experience when working with these buyers” will be the winners.

    Bonus: You may just end up rolling in referrals!

    PLUS: When you have time…below are some marketing tools to help support your success.

    1. Put Your Real Estate Business a Step Above with Your Own Branded Magazine

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    2. The Free 12-Month Done-For-You Strategic Marketing Plan

    The Real Estate Marketing Planner is a powerful 12-Month Guide that strategically defines what marketing to do and when. Four key market segments include niche Markets, geographic farming, sphere of influence, and past clients. – Click Here

    3. The Free Interactive Real Estate Business Plan

    The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals.  – Click Here

    4. The Become a Listing Legend Free eBook 

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    Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

      Millennials and baby boomers own the real estate market. While the former comprises the largest buyer pool (37%), the latter comes in quite close, at 32%, according to NAR’s 2021 Generational Trend report.

      The problem with agents being so hyper-focused on millennials is that few have homes to sell. In fact, only 22% of them are sellers.

      Boomers, on the other hand, are large and in charge of the seller’s market, owning 32% of it, right behind them, however, is that forgotten generation, Gen X.

      While many veteran listing agents typically don’t actively pursue buyers, it may be time to change your strategy.

      Members of Generation X, (age 45 to 56) are among the most likely to consider selling and for several reasons. Chief among them is to find a home that better fits their new normal: no more commute, working from home, homeschooling kids, and finding a large home so Mom and Dad can move in.

      Gen X is in the house

      While baby boomers hold the most money, Gen Xers earn the most of all living generations. They lost a lot during the recession – more than any other group. But, they’re currently the only generation to reclaim all the money lost.

      Here’s what our research has turned up about Gen X’s home shopping wish list:

      • Most want a single-family home, single-story, 3 or 4 bedrooms, 2,315 square feet of living space or more.
      • The top 3 features on the wish list include exterior lighting, a laundry room, and Energy Star® rated appliances.
      • They crave extra storage space and room for a “relaxed” home office.
      • They care more about the home’s features than the neighborhood.

      If you list a home that fits this description, hold it open, at least virtually, and laser-target Gen X buyers because the chances are good that they’ll be visiting or viewing.

      How to reach these buyer/sellers

      Chances are good this cohort has a house to sell as well, so targeting them is a brilliant strategy.

      Suggest that the homeowners create some obvious storage solutions in the garage and stage them just enough to show that they truly are storage solutions. In other words, don’t pack them full of stuff.

      If clients are replacing any appliances, convince them to go with Energy Star® certified appliances.

      When staging the home, ensure that your clients’ laundry room looks amazing. You’ll find brilliant tips at:

      If the home would work as a multi-generational home, let buyers know that up front, in your listing description and other marketing materials. Gen X is the largest cohort seeking these homes and their numbers grow every year.

      As the generation most likely to have children younger than 18 living in the home, Gen X also craves space for the youngins.

      This is why they’re the generation purchasing the largest and second most expensive homes.

      Finally, if you sell real estate in the following cities (listed in order of popularity, most popular first), you’d be crazy not to target Gen X. These cities are getting the most searches from this generation, according to Lending Tree research:

      • Memphis, Tennessee
      • Jacksonville, Florida
      • Atlanta, Georgia
      • Washington, D.C
      • Orlando Florida

      Are you ready to go after a specific generational niche? If so, create your targeted list HERE, then launch a scheduled Campaign in just minutes.

      The Call to Action postcard campaign is the perfect direct mail marketing tool to get prospects reaching out to you. And, right now, get 10% off Call To Action Campaigns.

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      This sale expires on 10/30/21. Please reach out to our support team at 866.405.3638 with questions or if there is anything we can do to help you with your success.

      PLUS: When you have time…below are some helpful tools to support your success.

      1. The Free 12 Month Done-For-You Strategic Marketing Plan

      The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here

      2. The Free Interactive Real Estate Business Plan

      The Free Interactive Real Estate Business Plan allows you to enter your business goals for this year and get a breakdown of how many prospects, listings, closing, and so on are needed to reach your goals.  – Click Here

      3. The Automated Way to Become a Neighborhood Brand

      Become branded in a specific neighborhood with a 12X15 marketing piece sent automatically each month to an exclusive carrier route. Watch this video to learn more or Click Here.

      4. The Free Real Estate Mailing List Guide

      This image has an empty alt attribute; its file name is Real-Estate-Mailing-List-Guide2-3-D-999x1024.jpg

      The Real Estate Mailing List Guide outlines the top tools for generating targeted prospecting lists including Baby Boomers, Empty Nesters, Investors, Lifestyle Interests, High-Income Renters, Move-Up Markets, and more. The Guide also defines done-for-you marketing campaigns to match these markets. –Click Here

      5. The Become a Listing Legend Free eBook 

      This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

      Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

      6. The Free Online ROI Calculator

      This image has an empty alt attribute; its file name is ROI-calculator-b-233x300.jpg

      Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here

      7. The Free Real Estate Marketing Guide “CRUSH IT” 

      This image has an empty alt attribute; its file name is CRUSH-IT-Guide-3-d-298x300.jpg

      The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted prospect list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here

        We’ve been hearing for years that Millennials are dominating the real estate market. But which markets are they choosing?

        It’s not urban centers. A lot of the time the cities they choose aren’t even among the largest in the state. Over the past few months, with the ability to take their jobs with them and work remotely, we’re seeing increasing numbers of the cohort choosing ever-smaller cities in which to settle down.

        The folks at Ellie Mae® periodically release their Millennial Tracker™ “… a web-based application that tracks closed loan application trends for U.S. homebuyers born 1980-99.”

        Ok, we could quibble with their dates for the birth of Millennials (born 1977–1995, according to the Center for Generational Kinetics), but we won’t.

        Obviously, this study is based on younger Millennials, who are just as active in the real estate market as their elders.

        Real Estate Times Series

        We thought it would be fun to take a look at the 5 hottest markets for Millennials over the past few months, according to Ellie Mae research.

        1. Dumas, Texas

        Dumas, Texas, with a population of 14,775 has, since 2010, experienced a population growth of 3.9%, according to BestPlaces.net.

        So, why are folks flocking to this small Texas town?

        The cost of living. It is more than 21% lower than the U.S. average.

        Located in the Texas Panhandle, about 45 miles north of Amarillo, Dumas is the seat of Moore County and the energy and agriculture industries fuel Dumas’ economy.

        If you sell real estate in the area, you’ve seen the influx of Millennials over the past year and locals expect it to continue. In fact, 70% of closed loan applications in Dumas, from May to July of this year, were from Millennial homebuyers with a median age of 30.

        2. Eagle Pass, Texas

        Another Texas city takes the number two spot in popularity with Millennial homebuyers. Google searches for the area include:

        • Is Eagle Pass TX safe? (you aren’t allowed to answer that one)
        • What is Eagle Pass known for? (the first American settlement on the Rio Grande)
        • How far is Eagle Pass TX from San Antonio? (143 miles)
        • How far is Eagle Pass TX from Houston TX? (336 miles)

        Seventy percent of closed purchase loans in Eagle Pass, over the past three months, went to Millennial homebuyers.

        The average age of these borrowers is 32, most are married (66%) and the largest share used a FHA-backed mortgage with an average loan amount of $162,205.

        What makes the Eagle Pass real estate market to attractive? One factor is that folks get a lot more house for the money here.

        For instance, there is an adorable home listed as of this writing, that features 3 bedrooms and 2 bathrooms in nearly 1600 square feet of living space. Price? $185,000.

        Jobs in Eagle Pass are primarily in food manufacturing, import, freight forwarding/transportation and retail.

        3. Hastings, Nebraska

        Hastings’ high placement on Ellie Mae’s list doesn’t surprise local agents. For at least three years now, North Dakota has ranked as the nation’s city with the highest percentage of Millennial residents.

        Real Estate Times Series

        Located 2 hours and 22 minutes southwest of Omaha (or $24 on an Amtrack train), the city boasts a population of 24,822 (as of 2018).

        Major industries in the region include:

        • Education & Health Services 
        • Manufacturing & Construction          
        • Wholesale & Retail Trade      

        Job growth in the city was a sluggish “… 0.0% over the last year,” according to bestplaces.net. “Future job growth over the next ten years is predicted to be 24.9%.”

        So, Millennials aren’t moving here for the jobs. They are most likely bringing their jobs with them as so many are doing since the outbreak of COVID-19.

        4. Midland, Texas

        Midland, Texas is hot, hot, hot with Millennial homebuyers. The city showed up on Ellie Mae’s tracker as number one with Millennials as far back as November 2018 and it’s back in 2020 – at number 4.

        It didn’t happen by accident, however. Midland city leaders understand that building a culture for new talent “… requires intention,” according to Nina Ignaczak with modeldmedia.com.

        Some of the credit for Midland’s popularity with the cohort also goes to fact that “Per capita personal income in Midland is the highest in the state,” according to dallasfed.org. There’s a lot of money to be made in the Midland-Odessa region.

        Millennials account for 65% of closed mortgage applications in Midland during the period researched. Sixty-two percent of these borrowers used a conventional loan for an average purchase price of $273,555.

        5. Williston, ND

        Another city that shows up just about every quarter on Ellie Mae’s list, Williston North Dakota is a Millennial magnet. In fact, the entire state is a hotbed for the generation.

        Moneyrates.com chose North Dakota as the best state for the Millennial generation. “North Dakota’s rise as a great state for millennials is due to a mix of business and pleasure,” the report claims.

        Williston, for many reasons, ranks high on the cohort’s favored North Dakota cities.

        Over the past few months, 66% of closed loan applications for homes in Williston came from Millennials. They, by and large, used conventional loans (66%), and boast an average FICO score of 745. The average age of these homebuyers is 32.

        Millennials began surging into Williston during the oil boom which, in turn, prompted city leaders to create more sports and recreational amenities.

        That response paid off when new, Millennial-attracting businesses rolled into town.

        Nearly 60% of these Millennial buyers in Williston secured a conventional loan for an average purchase price of $261,305.

        Real Estate Times Series
        Send the Mortgage Hits Low postcard from the Real Estate Times Series to your list of millennials or any area where you are interested in getting more buyers.

        Need help targeting a specific niche of buyers or sellers? Use our prospect list tools to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!

        PLUS: When you have time…here are some helpful resources we’ve made available to support your success.

        1. Become a Neighborhood Brand

        Become branded in a specific neighborhood with a 12X15 marketing piece sent automatically each month to an exclusive carrier route. Watch this video to learn more or Click Here.

        2. The Free Real Estate Mailing List Guide

        This image has an empty alt attribute; its file name is Real-Estate-Mailing-List-Guide2-3-D-999x1024.jpg

        The Real Estate Mailing List Guide outlines the top tools for generating targeted prospecting lists including Baby Boomers, Empty Nesters, Investors, Lifestyle Interests, High-Income Renters, Move-Up Markets, and more. The Guide also defines done-for-you marketing campaigns to match these markets. –Click Here

        3. The Free 12 Month Done-For-You Strategic Marketing Plan

        This image has an empty alt attribute; its file name is 2020-Planner-3D-999x1024.jpg

        The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here

        4. The Free One-Page Real Estate Business Plan

        This image has an empty alt attribute; its file name is Business-Plan-3D-Book-New1-270x300.png

        Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan.  – Click Here

        5. Become a Listing Legend Free eBook 

        This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

        Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

        6. The Free Online ROI Calculator

        This image has an empty alt attribute; its file name is ROI-calculator-b-233x300.jpg

        Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here

        7. The Free Real Estate Marketing Guide “CRUSH IT” 

        This image has an empty alt attribute; its file name is CRUSH-IT-Guide-3-d-298x300.jpg

        The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted prospect list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here

          Many millennials have exited the market. Millions more, however, are itching to buy a home. Millennials, the generation born between 1977 to 1995 (Center for Generational Kinetics), number more than 83 million.

          It’s rather challenging to paint broad strokes with a group of people this large. They are currently between the ages of 25 and 43, which makes pinning down their preferences, attitudes and lifestyle even tougher.

          We do know who among them is in the real estate market and what this group is seeking in a home.

          Millennials in the real estate market

          Three of the top five metropolitan areas that Millennial homebuyers are flocking to are located in Texas – Dumas and Eagle Pass, number one and two, respectively and Midland at number four.

          Hastings, Nebraska and Williston, North Dakota round out the top five, according to Ellie Mae’s Millennial Tracker.

          We’ve all heard of the exodus from big cities to smaller ones or even rural areas and this seems to be the proof.

          Here’s what else the Tracker tells us about the average Millennial homebuyer:

          • The average age is 31
          • 60% are married
          • Average FICO score: 740
          • The average loan amount is $211,050
          • The average appraised value of the homes they are buying is $267,456
          • Most (81%) obtain a conventional loan, with only 16% using a FHA loan and 1% a VA loan. Two percent of the loan types were “unspecified.”
          What are they looking for in a home?

          The 2020 Millennial Homebuyer Report found that the average Millennial homebuyer is seeking a home with about 1,700 square feet of living space.

          First Time Buyer Series

          “While these younger consumers may not aspire to have a McMansion, modern homes with new and different amenities are absolutely important,” according to Jeff Fromm, “expert on Millennials,” at Forbes.com.

          The pandemic has changed not only where homebuyers are choosing to live but their preferences in homes as well. Millennials are seeking the same, what is now considered basic, amenities as older buyers.

          They are especially focused on “…  where they can establish a ‘home office’ or a ‘home school’ or both,” within the homes they are considering purchasing,” Allan Merrill, CEO of Beazer Homes, tells Fromm.

          And, kitchens are still important. “Not necessarily smaller, but simpler, healthier, and smarter with as much visibility and natural light as possible,” according to Josh Kassing at BDMag.com (citing the National Kitchen + Bath Association’s 2020 Market Outlook).

          The neighborhood is key to Millennials as well. “Our younger buyers are typically very interested in being outside,” Merrill continues. Beazer homes is concentrating on adding amenity centers, pools, a dog park, walking trail and/or “access to a park or open space,” to their new neighborhoods.

          “After sheltering-in-place for four or five months,” according to Kassing, “and faced with growing families, they’re longing for more space—especially outside and not necessarily just for their kids.”

          He goes on to state that more than 80% of the cohort are dog owners and space for the pooch is critical.

          Deal breakers

          If you hold a listing that you assume is ideal for a Millennial, make sure that the homeowner takes care of the following “deal breakers,” according to the Millennial Homebuyer Report:

          • Mold
          • Pest / Insect infestation
          • Foundation issues
          • Leaky roof
          • Odd smells

          Deal makers? Urge your listing clients with smaller homes with yards to create an office or homeschool space to appeal to the commute-averse Millennial. It can be as simple as using an extra bedroom or the attic.

          Stage the backyard to give the Millennial buyer and idea of the lifestyle it affords.

          How to reach these homebuyers

          More than one-third of Millennials surveyed for the Homebuyer Report said that they will use a first-time homebuyer assistance program to help with their down payment.

          4 Low Down Payment Mortgage Options Direct Response Report

          The “4 Mortgage Options with Low Down Payments” Direct Response Report highlights down payment options as low as 3% down. Download this report and include it in your listing presentations. In addition, offer it as an opt-in on your website and free offer on your direct mail pieces.

          Yes, it’s common knowledge that one of the best ways to reach this cohort is through social media. But it’s not a “one and done” method of communication. It requires consistency to make a difference.

          To attract the attention of Millennials on social media:

          • Post regularly
          • Use clear, compelling photos featuring people like them
          • Promote suitable listings with ads on Facebook
          • Join Facebook groups and engage (as an everyday person, not an agent) consistently
          • Use relevant hashtags
          • Have the perfect listing for a Millennial? Create a single-listing website and share the URL on social media
          • Highlight your best testimonials on your home page and sprinkle them throughout the rest of your website pages. Social proof is critical to Millennials.

          Most of all, Millennials crave information on the process, from comparing mortgage rates to getting a mortgage all the way through closing.

          And, you’re the perfect person to provide this information.

          First Time Buyer Series
          Send a postcard from the First Time Buyer Series to a targeted list of Millennials in your area.

          Need help targeting a specific niche of buyers or sellers? Use our Demographic Search Tool to create the ideal list (it’s easy). Or call our support team for assistance at 866.405.3638!

          PLUS: When you have time…here are some helpful resources we’ve made available to support your success.

          1. Become a Neighborhood Brand

          Become branded in a specific neighborhood with a 12X15 marketing piece sent automatically each month to an exclusive carrier route. Watch this video to learn more or Click Here.

          2. The Free Real Estate Mailing List Guide

          This image has an empty alt attribute; its file name is Real-Estate-Mailing-List-Guide2-3-D-999x1024.jpg

          The Real Estate Mailing List Guide outlines the top tools for generating targeted prospecting lists including Baby Boomers, Empty Nesters, Investors, Lifestyle Interests, High-Income Renters, Move-Up Markets, and more. The Guide also defines done-for-you marketing campaigns to match these markets. –Click Here

          3. The Free 12 Month Done-For-You Strategic Marketing Plan

          This image has an empty alt attribute; its file name is 2020-Planner-3D-999x1024.jpg

          The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here

          4. The Free One-Page Real Estate Business Plan

          This image has an empty alt attribute; its file name is Business-Plan-3D-Book-New1-270x300.png

          Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan.  – Click Here

          5. Become a Listing Legend Free eBook 

          This image has an empty alt attribute; its file name is Become-A-Listing-Legend-3D-Book-White-274x300.jpg

          Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

          6. The Free Online ROI Calculator

          This image has an empty alt attribute; its file name is ROI-calculator-b-233x300.jpg

          Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here

          7. The Free Real Estate Marketing Guide “CRUSH IT” 

          This image has an empty alt attribute; its file name is CRUSH-IT-Guide-3-d-298x300.jpg

          The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted prospect list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here

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