Millennials were not always a viable market to go after for real estate agents…until now. A recent study by software company Ellie Mae, which analyzes mortgage data, found that 45 percent of all purchase loans were from millennials in January 2017. That’s up 3 percent this same time last year.
So, it’s no secret that millennials want to purchase their first homes. While they face extreme competition in a time when listings, especially in their target price range, are low, they are still growing and trying to make their mark.
As a real estate agent, pay attention this demographic. How? By targeting them a number of ways before they make the leap to homeownership. This in large part means targeting renters.
Finding the Best Renters
Rental communities that may be the best to target could be those who live in affluent areas and are served by jaunts that cater to a younger community. Think where the late 20s and early 30s crowd are renting.
A quick Google search provides several online services that can provide targeted lists and even help with your direct mail pieces.
What to Offer Renters
Once you have a targeted list, what value can you bring to renters? Since this is the first time buying a home for many renters, an obvious message is to go the straight route and offer your services. Create a new drip campaign specific to first-time homebuyers and add them to this list. Each email can include a different tip and every once in a while a mini-guide.
To go one step further, host a homebuyer class at a listing or at nearby venue. This allows you to meet prospects in person, answer any questions they have live and really make a connection that a mailer or email just can’t do.
If you hold an event, make sure that you prepare materials for them to bring with them. A checklist of what to do to prepare for a buy, a glossary of terms, a shortlist of steps in the home buying process and a referral guide of mortgage lenders, inspectors and more will all prove helpful. Have promotional notepads or mini-notebooks made as well as pens with your information on it so they can take notes and have your information handy when they return home.
An event like this is a great time to partner with your preferred lender or other real estate para-professional. Plan together how you will divvy up the agenda, decide how you will split expenses such as food, printing and venue, if applicable, and do a quick dry run prior to the event.
While renters may have been on your mind since you started in real estate, you might take a better, closer look at them today. The market may be slowing down slightly and inventory low, making it challenging for millennials to quickly buy, but when things pick up or your prospects are ready, you want to be, too.