While millennials are often branded as the generation that jumps from one thing to the next, constantly looking for something better, they’re really looking to settle down. In fact, according to NAR’s most recent Home Buyer and Seller Generational Trends report, millennials are outpacing all other groups in buying homes, accounting for 34% of the market for the fourth consecutive year. So not only are they buying, but they’re actually driving the housing market across the country.
Staying on Budget — Purchase Price vs. Monthly Cost
Most markets, just like in the greater Boston and MetroWest area, have only a limited supply of homes with ever-increasing prices. Although they may be first-time home buyers, millennials are savvy with sticking to a budget. Instead of experiencing sticker shock, they break down the cost to a monthly payment.
Online real estate databases have been quick to take notice. Recently launched RealEstate.com now not only lists a home’s asking price, but it also displays an “All-In Monthly Price.” This removes the guesswork from budget considerations by including estimated property taxes, HOA fees, utilities, insurance, and closing costs.
Since actual home ownership can be broken down into a monthly fee that is often considerably lower than a monthly rent payment, millennials understand the value of their investment.
What Are Millennials Looking for in a New Home?
According to a 2016 NAHB study, millennials want large homes — over 2,300 sq. ft. on average. This means they’re primarily looking for homes outside the city, in the suburbs. They value space, both indoors and out, and a neighborhood feel.
48% of millennials surveyed would like four or more bedrooms in their new home. These young buyers are interested in having either a deck, porch, or patio, in addition to exterior lighting, both a shower and tub in the master bathroom, and hardwood floors in the living space.
Going Online: How Millennials Shop for Homes
With real estate database sites so easily accessible, most buyers are beginning their search for a new home online. Real estate agents do still come into play. However, the dynamic has changed.
Since it’s easy to find a dream home online, brokers aren’t required to locate new properties. Their role is now simply to facilitate the sale by taking care of negotiations, paperwork, and contracts. Data from Redfin shows that 73% of millennial sellers negotiate a lower commission with their listing agent, with 63% of those being successful, while 59% of millennial home buyers also report receiving savings from their buyer-side agent.
BuySide Broker: Putting 1% of the Purchase Price Back in Your Pocket
Whether you’re a millennial, a first time home buyer, or a seasoned Gen X home buying veteran, you deserve to get more. At BuySide Broker, we help you do just that.
When you find your perfect greater Boston area, Metrowest or Cape Cod home online, you hire our team to submit an offer on your behalf. We’ll navigate the purchase process, and once the deal is closed, you get 1% of the purchase price back. Start dreaming about what you’ll use that for — will it be home upgrades, new furniture, or maybe just something to cover the closing costs?