One of the more difficult challenges in the real estate business today is trying understand the mindset of the millennial. Many millennial's have adopted the mindset that home ownership is simply not worth the sacrifice(s) required to make ownership possible. It certainly is understandable. Most millennial's have a fresh memory of the last economic meltdown and housing crash and feel that the reward is not worth the risk. But the housing crash of 2008 was unusual, and hopefully a one-time event that should not reoccur in their lifetime.
But how do we as agents, lenders (and parents) convince them that home ownership is not only worthwhile, it is a necessity if they ever want to achieve the same level of wealth and security that previous generations have been afforded?
Home ownership was so important to members of previous generations of Americans that they were willing to make the sacrifices necessary to purchase a home. Those sacrifices often meant doing without some things like dining out, attending concerts and sporting events or buying new cars. But doing without those things at a young age may have been the secret to having them at an old age.
There have been many studies showing that homeowners achieve greater wealth in their lifetime than those that do not buy. A recent publication by Benchmark shows that owners achieve greater wealth in part because of "forced savings" (paying a mortgage) rather than spending on things that do not build wealth. According to author and self-made millionaire David Bach “If Millennials don’t buy a home, their chances of actually having any wealth in this country are little to none."
So as real estate professionals we must find a way to show the reluctant buyer the advantages of ownership. For many of us, that means speaking a new language. Mastering social media, using streaming video, and offering mobile ready websites and mobile apps are ways to make contact. Then we must pique their interest, show them the value and wet their appetite for building a future through home ownership.
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