Millennials continue to find more interest in entering the housing market and purchasing a home of their own. With young adults' prevalence among the demographic of potential homebuyers, it is important that as a seller you know exactly how to appeal to this particular generation. Having a concrete understanding of what young adults look for when they decide to invest in a new home is crucial when it comes to preparing to sell your property.
Millennials ready to buy homes
A number of young adults have finally had enough of rising rent and might be entering the housing market this spring. According to Bloomberg Business, younger buyers will likely be able to take advantage of a better job market and more lenient mortgage lending standards.
"We're seeing increased interest from renters in homeownership," Stan Humphries, chief economist at Zillow Group, told Bloomberg. "That's going to coincide, more than likely, with increasing mortgage rates as the Fed gets ready to probably increase the target rate this summer."
As rental rates outpace the cost of monthly mortgage payments, owning a home becomes a more appealing option for many individuals. If someone is going to spend a large chunk of his or her income on a living arrangement, he or she might as well start building equity and ownership.
Invest in new kitchens and bathrooms
Due to smaller budgets and spending limits, millennials look for homes that have newly renovated kitchens and baths with updated hardware and appliances. According to Bankrate, young adults prefer houses that do not require upgrades in these particular rooms because they are less able to afford renovations here.
"The primary reason younger buyers seek updated kitchens and baths is because they have limited budgets," Jack Curtis, a real estate agent, told Bankrate. "Most of their savings will go toward the down payment and furnishings. Kitchens and bathrooms are also the most expensive parts of a home to update, and young homeowners cannot afford to sink a lot of money into those areas."
In most instances, an updated kitchen and bathroom is something a homebuyer wants when they purchase a new house. This Old House noted that most buyers become less interested in a house if it has outdated appliances or old tiling because they prefer updated spaces. In addition, renovations of these spaces are inconvenient as well as pricey.
Even if you do not fully renovate your bathroom, ensure that this space has sufficient ventilation. Consider conducting mold inspections to help determine whether your current system adequately removes moisture from the room.
Entertaining is a top priority
Millennials want to purchase homes that allow them to easily entertain guests, according to Forbes. Updated kitchens that are easy to prepare food in, open concepts and outdoor seating make having friends and family over fun and enjoyable. Young adults look for homes where they can visualize entertaining large groups.
Separated rooms do not appeal to younger buyers. These cut off opportunities to easily make food in the kitchen while still watching the big game or talking to a guest who is in the living room.
Close proximity to night life, restaurants and public transportation
Younger buyers are interested in buying houses that are close to stores, restaurants, bars and the public transportation system.
"I'm a boomer and for my generation, it was a badge of honor to get your first car and drive everywhere," Sherry Chris, president and CEO of Better Homes and Gardens Real Estate, told Forbes. "Millennials are used to living in urban environments and many don't have cars."
Millennials prefer homes that are located in a region that provides them with easy access to their job or nearby hang-out spots. If your home is located in a hip and fun neighborhood, ensure that you play that up and tell prospective homebuyers to check the area out. Let a good atmosphere and area work in your favor.
Features millennials love
Bold and bright colors are adored by many younger buyers. According to Forbes, they prefer a more colorful palette and embrace more eccentric shades.
"There's been a popular belief over the years that painting your walls a neutral, off-white is the best thing to do for home buyers, but our research tells us differently," Chris told Forbes. "We find that bold colors work very well."
Consider painting an accent wall with a color that pops and makes a space look funky and interesting.
Another feature that many younger buyers find appealing is hardwoord flooring. Carpet can become stained and requires more maintenance than hardwood. Hardwood flooring is more appealing to the busy young adult who admires the character and charm hardwood brings to a room.
Before planning to sell your home, consider what prospective buyers want to see in a new house. Tailor the listing description of your property to the needs of younger buyers and capitalize on the presence of features this demographic is especially interested in seeing in their first houses. If necessary, also update certain areas of your house to run parallel with the demands of today's interested homebuyer.