In this chapter: > The Millennial buyer > The real estate transaction > Business strategies

1. 3. Millennials In this chapter: > The Millennial buyer > The real estate transaction > Business strategies > Unique considerations 35

2. The Millennial Buyer • Virtual environment is standard • Obtain information about home-buying process from: • New media sites/friends • Television 35

3. The Millennial Buyer • No standard lifestyle: • Not married and/or without children • Alternative lifestyles the norm • Families are broader communities • Rapid career change 35

4. The Millennial Buyer: Characteristics • Hyper connected • Multitaskers • Apt to crowdsourcing • Socially oriented • Optimistic 36

5. The Millennial Buyer: Expectations • Transparency • Demonstrate value • Professionalism • Brutal honesty • Consumer centric • Educator • Proficient in technology 37

6. Millennial Myths • Impatient or marginalizing of your time • Too casual • Self centered 38

7. Ownership Goals 39

8. Ownership Goals • Want lifestyle not home • Place emphasis on community • Appreciate new features/prone to upgrade 40

9. Buyer Counseling • Change your mindset to a customer-centric business • Understand Millennial mindset • Attract e-lurkers 40

10. Buyer Counseling • Focus on information dissemination and transparency • Let them be active participant • Provide immediate feedback • Remember: interview process is real-time 40

11. Buyer Counseling • Meet face-to-face first • Help align expectations to reality • Use casual and conversational approach 47

12. Buyer Counseling • Be honest • Uncover pre-conceived notions about process • Prove your value • Use visual representation of process/timeline 48

13. Sample Home-Buying Process and Timeline 51

14. The Buyer Representation Agreement • Approach discussion carefully • Provide thorough explanation and benefits • Provide copies of relevant forms upon first contact • Explain concept of agency at first in-person meeting 53

15. The Buyer Representation Agreement • Ensure they are ready, able, and willing to buy • Show value and action instead of sales pitch • Follow state and local requirements 54

16. Community and Home Features • Proximity to restaurants, coffee shops, bars, restaurants, shops, dog parks, gyms, and so forth • Home office • Open concept 54

17. Community and Home Features • Outdoor space • Fenced in yard (pets) • Storage • Energy-efficient appliances • Resale considerations 55

18. Negotiating • Set expectations • Give as much information and explanation as possible • Show MLS comps 56

19. Negotiating • Don’t discount anything, but provide additional insights and explanations • State pros/cons of decision points • Recognize emotional component 56

20. Financing • Serve as traffic controller • Explain importance • Stress need to work with loan agent • Provide resources • Share factors that impact credit/financing 58

21. Financing • Explain timeframe • Stress need to budget for home repairs and maintenance • Remember that not all potential buyers are ready or able to buy 58

22. Average Student Debt 58-59

23. Closing • Explain what to expect • Share in excitement • Closing gifts 61

24. Closing Gifts That Keep on Giving Express your appreciation once a month, every other month, or every quarter. This coupon book encourages users to be local and shop locally. 62

25. Communication DOs • Focus on quality, timing, and format • Get to the point • Embrace technology • Use Internet • Be sincere, authentic, relevant, valuable 65

26. Communication DOs • Customize your message • Respond within 2 hours • Communicate on their terms • Send handwritten notes 65

27. Communication DON’Ts • Waste time • Forget that face-to-face is best sometimes • Assume Millennials have home phone or TV • Fake familiarity with technology • Send listings if they don’t fit needs and wants • Assume anything • Feel the need to act immediately, just respond 65

28. Marketing • Be an expert in the buyer • Appeal to their sense of being special and unique • Avoid appearance of over-promising • Use multimedia • List all ways to get in touch 67

29. Marketing • Ensure Web site is up-to-date • Make it viral • Convey passion and excitement • Make it easy to get to know you • Provide valuable information • Appeal to Millennials’ parents 67

30. Marketing 68-69 Source: Reprinted with permission of Heather Joubran, GRI, www.heathertherealtor.com.

31. Marketing 68 Source: Reprinted with permission of Heather Joubran, GRI, www.heathertherealtor.com.

32. Networking • Establish profiles on new media sites • Join groups and become fans on Facebook • Send relevant, content-rich links via Twitter 69

33. Networking • Be an expert for online real estate networking sites • Write online articles for newspaper • Start blog • Think “out of the box” to set yourself apart 70

34. Young Professionals Network (YPN) • Become familiar with YPN • Subscribe to RSS feeds • Review creative marketing ideas and contribute resources • Reach out to your local network 70

35. UNIQUE CONSIDERATIONS • Tax issues • Investment/estate planning 71

36. Recommend HouseLogic.com • New consumer Web site • Free resource • Can help buyers increase and protect value of home 72