The Gen Yers or the Millennials, are the new catalyst in the housing market. The dawning of this new era requires catering to the high tech and internet /cyber savvy demographic or segment. Understanding their behavior and buying patterns is critical as realtors because they are and will be impacting the real estate market immensely.
The Shift. “By the end of the decade, the balance in the U.S. will flip from approximately 50% baby boomers and 25% Generation Y workers to 25% baby boomers and 50% Generation Y workers,” according to a CNN report Generation Y- Set to transform office life. Consequently and inevitably, they become the dominant players in the housing market because they have encapsulated most of the purchasing power.
Always on the Go and Mobile. Because of their technological savviness, they are equipped with sophisticated devices. They can’t live without smart phones and other mobile gadgets. They breathe and exhale in the cyber world. In dealing with Gen Y, your response time should be quick because their attention span is very short. They easily recognize your reliability factor as you respond quickly to their questions and concerns through the medium of their choice (text, email or phone). “Gen Yers’ world was shaped by communication technology that some have used since they were as young as age five. Raised on 24/7 connectedness, they are accustomed to multi-tasking: juggling between e-mail on their notebooks and surfing online, and talking on their cell phones.” Here is a link to Metlife’s Study on Gen Y Profile.
Realistic,Careful and Pragmatic. Although their tastes and preferences are diverse, they tend to make their decision based on what they can afford. Other factors become secondary. Their discreet buying decision is manifested due to the boon and bane of real estate market and the economic collapse.
Passive and Aggressive Behavior. Despite their arsenal of knowledge of the market, Gen-Yers still seek the expertise of the realtors in their buying process. Even though they have done multitude of online research, they would not dismiss the value that realtors bring in the complex real estate transactions. This fact has also been a part of their homework. Albeit reliance on the realtors for guidance and assistance, they are not hesitant to give clear and specific directions.
Gen-Yers are Family-Centric. They have a strong relationship and ties with their parents. So, getting the parents' approval is just as important as finding the home that fits their needs. Remember that parents look out for their children’s best interest. Hence, you and the parents have common goal.
Parents are not your Foes Listen to what the parents say. If you encounter negative remarks about the house, don't negate or contradict. Give them your honest and genuine opinion based on other properties your clients' have seen and feed them the information on how the subject property fares or compares to other properties. You can't be defensive. If necessary, you can show them the other properties the children have seen. Let them feel that you are there to protect their children's interest as well. If you do this genuinely, it resonates. Not only do you get the Generation Y buyers’ approval. You also gain the parents' trust.
Capturing Gen Y’s Attention. Aside from the word of mouth which they value highly because of the small sphere of influence they keep, online presence is a must. A simple with clean lines design and real time and user-friendly website is of paramount importance. Gen Yers have little patience. Therefore, your website should capture their attention in less than a minute. Making them stay on your website is something you have to consider seriously.
And by the way, don’t forget to reach out to them through the social media: Twitter, Facebook, Linked In, You Tube and Google +. Mingle and Socialize. Don't be anti-social...media:).
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