Millennials have a bad rep to other generations. Older generations claim that most millennials or GenYsare lazy, financially illiterate, and downright swimming in debt. There are other stereotypes that millennials are fighting to break, which they managed to successfully do so. One of which is when they finally broke the real estate market.
Although some millennials are renting and are still living with their parents, many are now diving into the real estate market, searching for their own homes. They are taking advantage of the different mortgage types and low-interest rates. Even with the rising cost of living, credit card debts, and student loans, they can now buy their own homes.
Despite millennials’ financial hardships, there is no doubt that they are changing the home buying process. The following list some ways millennials are starting to revolutionize how consumers buy their homes.
Online Home Buying
Millennials use the power of technology to accomplish tasks, including searching for potential houses for sale. They use internet research to find houses that are currently sold online. They are also into real estate apps that list properties being sold in their desired location.
Today’shome buyersare also using technology to find a mortgage lender that will help them make the buying process possible. They use online research to check which mortgage type best suits their needs, be it a conventional mortgage or a jumbo loan. While some millennials can only afford mortgages backed by Fannie Mae and Freddie Mac, some can afford high-priced properties.
More millennials are also more open to online processes and transactions when buying a house. They search for real estate agents online, are willing for online home inspections, sign documents, and transfer funds virtually. They crave convenience and are changing the way real estate professionals are catering tohome buyers.
Demand for Suburban Locale
Many of us can’t imagine exchanging our city life with the suburbs. As much as possible, we want our homes to be within the city, near bigger malls and business districts. We want to be near our work area, even if that meant a higher house price tag and a daily battle with traffic jams.
But for millennials, this is not the case. Most of them would rather buy houses in the suburbs. They are willing to make a home purchase in developing neighborhoods instead of already established ones. They realize the potential that such locations can have in the future and are willing to be among the first ones to enjoy the perks.
Modern home buyers are also more likely to embrace remote work. Having the ability to work from wherever your location might be gives them the freedom to live where they want. This means they no longer need to constantly drive to work to retain their livelihood.
Remote work made it possible for millennials to earn without leaving their homes. This gave them more reasons to buy houses in the suburbs. They get to take a break from the hectic city life, live in a house with enough outdoor living space, and still keep their jobs that helps provide for their needs.
Increased Demand for Options
One thing every home buyer should learn from millennials is to embrace options before making a decision. This pertains to mortgage types, lenders, and real estate agents, to name a few. There is no reason to stick to the first lender that pre-approves your mortgage or the first real estate agent you come across with.
Since many are local realestate professionals, buyers should take time before choosing the people they will be working with. Just because you found a real estate agent, you are already obliged to use their services. Just because a mortgage lender gave you’re your first mortgage pre-approval already meant you should stick to that lender.
Millennials love options and are taking advantage of them. They use online research to find suitable mortgages, reliable real estate agents, and even mortgage lenders. They won’t settle for something that they are not satisfied with, including the people they are working with.
In general, most millennials obtain six mortgage quotes from different lenders before making a choice. Although this extends the home buyingprocess, they have great reasons for doing so. This allows them to review their options and actually make a sensible decision before investing.
There are many other things that millennial home buyers are doing that are affecting the home buying process. Their efforts are making the home buyingprocess more transparent, tech-based, and efficient. Some of them may have made a series of mistakes when buying their first homes. But more millennials are learning from other home buyer’s mistakes and are using this to make better home investments.