Are millennial buyers more traditional than expected?

Despite technology advances, most millennial are heading to local Realtors® instead of online ones.

According to a recent survey from CentSai, 75 percent of millennials reported they would use a local real estate agent instead of an online agent, and 71 percent said they would choose a local lender. However, 91 percent reported they would go online to research neighborhoods and homes for sale.

PAR First Vice President Bill McFalls said he recently closed a contract with a younger couple purchasing a home, and agrees that most millennials are still traditional in that they work with agent. “The buyers are definitely tech experts, but were very responsive and dependent on the information and counseling I could provide in the transaction. The local expert was an important part of their decision process,” he said.

President Kathy McQuilkin added: “While these young men and women are savvy technology users, they really want the same personal service, experience and knowledge that their parents expected. It is invigorating to see their dedication to becoming educated purchasers on the whole purchase process. I absolutely love helping them find the right home.”

Meanwhile, PAR President-elect Todd Umbenhauer said in his experience, millennials will check out sites like realtor.com®, but when it comes to actual purchase process, they have all elected to go to a local Realtor®.

Fifty-six percent of millennials plan to buy a home in the next two years. Of those who do not plan to purchase, 68 percent reported its due to lack of funds.

“My immediate marketplace is conservative by nature. That said, I was interested, if not surprised, to learn that the CentSai survey revealed that millennials, in general, are more traditional than many think. My children are millennials. My daughter and son-in-law purchased their first home in September and were always focused on accomplishing that as soon as possible. My son is single and not as intentional about buying a home, although he admitted he has not considered all the benefits of home ownership. I explained the tax benefits realized, such as deductions for real estate taxes, mortgage interest and so on, through home ownership that make the net cost of owning a home less expensive than renting in many cases. Interestingly enough, I do not hear as many Realtors® discussing that aspect of home ownership as intentionally with their clients as they did years ago,” added Umbenhauer. “My experience with young buyers today is consistent with what it has always been. They want to buy a home as soon as possible with the guidance of professionals they trust.”

PAR Treasuer Bill Festa said that working with millennials has been an “enjoyable” experience. “They know what they are looking for and when they find it, they stop everything and make an all-out effort to get it. If they are outbid, they just shake off the dust and move on. They value their agent’s opinion and become great referral sources to their friends and family. I also find that they are very community-minded. They get involved in town watches, clean local parks and keep an eye out for elderly neighbors,” he said.