For the last few years, agents have been hit over the head with ideas about how to engage and win over millennial buyers. Agents have switched to texting and Facebook messenger and some are even dipping into Snapchat to get on the level of this young, tech-savvy demographic.
But there’s another opportunity with millennials — a more lucrative opportunity — that you’ve probably not heard as much about. An improving economy and a definitive sellers’ market is converging to bring out an unlikely segment: millennial home sellers. Here are four irrefutable stats that show it’s time to target millennial homeowners who may be ready to move on to the next phase of their lives.
Four irrefutable facts about millennial sellers:
1. They’re selling after just five years
Across the country, home sellers are living in their home for nine years on average before selling. Last year’s Gen Y sellers stayed in their home for only five years before listing.
2. They didn’t wait to sell
By their own reports, 85% of sellers under age 35 moved when they wanted to. Even though they’re selling sooner, only 15% of millennial sellers reported having to wait or rent out their property after they wanted to sell.
3. They’re offloading starter homes, but staying modest
Unsurprisingly, sellers 35 and younger are selling smaller homes. But they’re not upgrading to spacious luxury homes — on average, they’re expanding their square footage by just 25%.
- Median size sold home: 1,600 square feet
- Median size new home: 2,200 square feet
4. They’re selling for more space and better professional opportunity
Millennial home sellers are primarily selling because they’ve outgrown their current digs; 31% of sellers under 35 sold because they want more space. The second most popular reason for selling (17%) was a job relocation that required them to move from their current abode.
All stats from NAR Profile of Buyers & Sellers, and NAR Generational Trends Report
What this means for you
Starter homes are real, even in today’s tricky buying economy. If your CRM usually turns up the dial on past clients 7 or 8 years after they transacted, you may miss the opportunity to win the repeat business of millennials. Simply put, younger sellers are not staying put as long as traditional sellers have. Even when they can only afford to move up slightly, they’re taking the chance.
Tell us: Are you seeing this trend?
If you live in a less expensive market, where more millennials are prone to own homes, you may be seeing more young sellers offloading condos, townhomes or other starter homes while interest rates remain low.
Are you selling homes owned by those under age 35? How do you engage millennial sellers? Share your experience in the comments — we’d love to know how you’re working with this emerging demographic!