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The pandemic has completely changed the homebuying game and has bumped up millennials to become the largest share of all homebuyers. Many more are just starting the hunt for their first homes.
With this critical demographic leading the pack in homebuying, Realtors need to build connections with millennials by helping them understand both the housing market landscape and the overall purchasing process.
This means offering education on the financial requirements alongside the various steps and items needed when preparing to purchase a home so the best and final offer can be presented when the time is right. This will be key in completing a successful transaction without your millennial buyers risking buyer’s remorse.
It could take days, months or even years in this post-pandemic housing market to find the home of your millennial buyer’s dream. Still, for those who do find that perfect match and are ready to submit their offer, there are a few things that should ultimately factor into the decision:
Maintain flexibility with timing
Good things come to those who wait — and you’ve already waited this long. Encourage your buyers to be agile and adapt as needed — they may want a quick close, but the seller may need a little more time to prepare. Anticipate the need to compromise to save them from any disappointment or ultimately losing out on their dream home.
Map out the financial plan
Remember, your millennial buyer’s first home will most likely be the most expensive purchase in their lives to date. Educate them on why having cash for a down payment (20 percent down as recommended) is important while budgeting for future expenses and a “rainy day fund.”
These factors are especially critical to keep in mind if they are planning to waive inspections and contingencies, which has become the new standard in this highly competitive market.
Look into new homebuyer programs
Regardless of financial need, several programs are specifically built to help out new homebuyers who might not be able to qualify for a traditional mortgage. Pathway Homes offers financial education and assistance in making that first payment and getting a foot on the path toward homeownership by offering rent-to-own solutions that will get prospective buyers in a home right away with a clear plan to become a homeowner.
Your buyers may also qualify for specific programs in their home state that are built to help offset the down payment needed.
Lock in the homebuying team
As a knowledgeable real estate agent, you can do a lot, but you know that you can’t do it all. A home purchase requires an entire team — from attorneys to mortgage brokers and even a moving company.
The best Realtors must pull from their top resources and assemble an all-star team for their buyers so they are ready to launch at a moment’s notice, as this could be what makes or breaks your ability to lock in an accepted offer for your buyers. Do your research and ensure everything is in place so your support team can jump right in as soon as your clients agree and give you the green light.
Buying a new home can be considered both one of life’s greatest stressors and biggest achievements, and with the current market climate it is probably leaning on the more stressful side for today’s millennials.
By taking the proper steps and doing the required research, you have the opportunity to help your millennial buyers overcome the many barriers that have continued to shut them out of homeownership and ultimately get them into the home of their dreams — and it will be well worth the wait when that time comes.
Susan Moguel is the Head of Pathway Homes’ Agent Partner Program. Follow her on Twitter and LinkedIn.