According to a 2018 Millennial Homeownership Report from the Urban Institute, only 32% of millennials owned a home in 2015. But now that mortgage lenders are experimenting with the application process and new ways to determine creditworthiness, the number of homebuyers under the age of 40 is expected to rise this year.
Millennial homebuyers aren’t much different from homebuyers from other generations. But there are a few ways you can make your home stand out to the younger buyer.
Price your home correctly
Millennials have been slow to enter the housing market because of the market’s low inventory and high prices, especially in popular cities. The average sales price in Manhattan for a condo was $1.9 million and it’ll take a new homebuyer 20 years to save for a down payment in San Francisco.
“[Millennials] often are paying off other loans, making it tougher to save the cash required for a down payment,” said Steve Gottlieb of Warburg Realty in New York City.
That said, it’s important that you’re pricing your home correctly so your target buyers are interested in the house you’re selling. To do this, take a look at the homes like yours in the surrounding area and what their prices are. You want to price your home along similar lines.
Focus on small renovations
Millennials and baby boomers have different lifestyle choices including how they spend their money, how they start their families, and when they get married. Because of these differences, the real estate market is facing a unique problem: there are too many big houses.
“These days, buyers of all ages eschew the large, ornate houses built in those years in favor of smaller, more modern-looking alternatives, and prefer walkable areas to living miles from retail,” said Candace Taylor in The Wall Street Journal.
Younger homebuyers are also uninterested in outdated interior design trends, preferring instead low-maintenance designs and sleek, discreet appliances. Compared to the 41% of baby boomers, up to 47% of millennials are more likely to choose white kitchen cabinets.
With that in mind, consider sticking to smaller updates when you’re getting your home ready to sell. Don’t worry about adding home additions or sunrooms. Instead, focus on the small things you can change such as painting your cabinets, replacing outdated tile, and updating appliances.
A great yard is still a great sale
One thing that hasn’t changed with homebuyer trends is that landscaping still has a return on investment of 14%. Millennials may be having smaller families, but great backyards are versatile for kids, pets, and outdoor celebrations.
If your yard is sparse, consider adding local flowers and bushes to give it more life. It’s also worth adding a fence considering 56% of millennials own a dog and, coincidentally, the U.S. fencing market grew 6.2% in just five years.
With more Americans under the age of 40 entering the housing market, it’s important to take into consideration what younger homebuyers are looking for in a house. Millennials might be all about the looks, but price and yard space are just as important. You don’t need to make major changes to make your home appeal to the millennial buyer.
