Top 4 Things Millennials Look for When Buying a Home

While millennials don’t have the best experience with real estate ownership so far, they’re some of the most researched and knowledgeable buyers in the market.

As more millennials make the decision to become first-time homebuyers, the real estate industry is shifting. The next generation of American consumers are looking to cross off items on their own unique checklists when making a real estate investment, and it’s up to members of the real estate community to keep up. To get a better understanding of what millennials are looking for when buying a home, ESTATENVY spoke with Maria Cuadra, a real estate broker and owner of The Cuadra Group, and Dawn Bremer, who leads the Bremer Team out of Keller Williams’ North Shore West office in Chicago.

Here are the top four things millennials are searching for throughout the home buying process:

Facts and Information

Before millennials start the purchasing process, they want to be equipped with all of the facts and information at their disposal. That means their realtors need to aid with the education process, especially for first-time homebuyers.

“Let’s keep in mind that millennials do not have a great experience with real estate ownership so far. They grew up in a time where their parents or their friend’s parents lost their homes or lost equity due to the recession in the late 2000’s,” said Bremer. “Because of that, they have become some of the most researched and knowledgeable buyers in decades—which is fantastic. They’re looking to be educated, and they want information and facts to help them make their purchase decision. That’s where a trusting relationship with a realtor comes in—when facts and education go together, we as realtors are able to make them happy clients.”

High-Speed Service

Once millennials are armed with information, the next thing that they’re looking for is high-speed service. Not only do they want to find affordable homes in great locations—they want to find them as quickly and efficiently as possible.

“I think millennials are looking for affordable homes in growing areas. They like to reshape locations, and Wynwood [in Miami] is a result of a new wave of young adults redefining our city,” said Cuadra. “I don’t necessarily think that millennials are all about technology when viewing and buying a home. They still want to be present, however, millennials expect speed. The speed of technology is what they want to find in a realtor. Someone who is straight to the point and gives them fast results along with all-around service.”

A Strong Mortgage Rate

As the economy continues to recover from the recession, banks are beginning to be more aggressive about mortgage loans. This means that for millennial homebuyers, it’s easier than it has been in recent history to secure a strong and competitive rate.

“One of the biggest trends shaping the markets today, especially for the next generation of homebuyers, is rates. Rates are increasing, and banks are being way more aggressive about mortgage loans. After the recession, a lot of banks made it difficult for people to purchase homes and get loans. But that’s relaxed a lot,” Bremer said. “Now, banks are aggressive about getting new buyers to come in and offer them a sweet rate with no drops, points or some fees. They want to get their business out there and help people purchase more homes.”

A Good Deal

One of the biggest things that all homebuyers—including millennials—are looking for is a good deal. Even though the market fluctuates, buyers want to be ensured that they’re making the best investment for them when purchasing a home.

“Buyers and sellers are understanding that markets change. Coming out of a market crash during the 2008 to 2011 era, people came out thinking they could buy anything and at the lowest price possible. This happened but during a transitional period,” Cuadra said. “The market has indeed reshaped itself. We are a healthy market. We have reshaped our industry. People now understand that, at least some. The expectation has thankfully adapted itself to where we are today. Today, if you qualify to buy a home, you can afford it. Today, if you want a home, you don’t waste time.”