Unlike past generations, Millennials have been slow to get married, have kids, and form households, and their staggering student loan debt has kept many of them out of the housing market.
But recent data indicates that might all be changing.
According to the National Association of Realtors, Millennials now account for the largest share of the market, making up 34 percent of all home buyers. That’s only going to increase, too, as the generation gets higher-paying jobs and starts forming families.
Is the lending world ready to handle these buyers? Likely not. Our research shows that loan officers, in particular, are having a hard time reaching and marketing to Millennials. And when they do have interactions with them? They’re not sure how to go about communication or handling the transaction.
To shed some light on the matter, let’s look at a few of the problems LOs are having when targeting this up-and-coming buyer segment.
When it comes to buying a home – arguably one of the biggest transactions of someone’s life – most people want to use the tools they’re comfortable with. And for Millennials, that means emailing, texting, instant messaging and even chatting through social media. They’re digital natives, and they grew up with tech in hand. Consider adopting these methods of communication when working with Millennials, and make sure it’s obvious in your marketing materials that you offer it. You want potential customers to know right off the bat that you can accommodate their needs and work within their expectations.
Millennials are big into research. They’re well-versed in Google, and they like to get the lay of the land before diving into anything new – especially a big purchase like a home. Because of this, many Millennial leads you’ll get aren’t “hot” just yet. They’re still in that research phase, trying to gather information and learn as much about the process as they can. If you want to earn their trust (and their business), nurturing these leads gradually is crucial. Send them emails with valuable home-buying tips and information, follow up to answer their questions and address their concerns, and share great resources on your social media accounts. Stay top of mind and hold their hand through the process. When they’re ready, they’ll come to you for the rest.
To Millennials, a brand’s website is the only thing that matters. It’s the single piece of marketing you can just about guarantee a Millennial has seen – and they’ve probably accessed it across multiple devices and dates. For LOs in this Millennial-heavy market, having some sort of online presence is vital if they want to be considered by this massive buyer segment. Whether it’s a full-on website, a Yelp listing, or just a Facebook page, there needs to be at least one online touchpoint for Millennials in the research phase. It should include reviews, a bio and a few home-buying resources – stuff newbie buyers might not know about or be familiar with.
Just a few tweaks to a loan officer’s communication methods and online presence can mean a big difference in the Millennial market. Need help to hone in on your Millennial strategy? Get in touch with Tobe today.