Selling homes to millennials: What you need to know
Category News
Millennials make up a significant percentage of current home buyers in South Africa. Aged between 27 and 42, and with distinct values and preferences, this generation looks at property differently from their parents.
"When it comes to selling a home there are fundamental principles that remain the same for all buyers," says Berry Everitt, CEO of the Chas Everitt International property group. "But with this age group, both sellers and agents need to be aware of new priorities and the shifts in how they search for properties that can impact the success of a sale."
Together with our bond origination partner, BetterBond, we have a look at some of these changes below:
Always connected
Whether they're working, playing or socialising, millennials are constantly connected to the internet, so they expect the homes they live in to have high-speed connectivity. As a tech-savvy generation, they're also looking for homes with smart features. A load-shedding backup system that's already installed is also a huge attraction.
Eco-friendly
Millennials are environmentally conscious and actively look for ways to reduce their energy consumption. Properties built from sustainable building materials that have solar or gas appliances and alternative power systems like solar already installed are sought after. As a green generation, having recycling bins or a recycling service in the area is another way to appeal to these buyers.
Work-from-home
While many people have gone back into the office full time, there are still a significant number who enjoy the freedom and flexibility of hybrid work. This means that comfortable, quiet and connected work-from-home facilities are likely to be high up on a millennial's wish list.
Affordable price
Price is the biggest consideration for millennial buyers, followed by space. Not being able to save a deposit is not a deal-breaker, however, as some banks offer 105% and 110% bonds. Their biggest hurdles to homebuying are youth unemployment, student debt, lack of credit history and unstable jobs. With these challenges, they still want to buy homes and regard homeownership as a way of building equity.
Investment opportunities
International data shows that millennials favour renting, but when it comes to entrepreneurial South African millennials, they are increasingly opting for "house hacks" where they buy property and rent parts of it out to help pay the bond. Or they buy a home and let their parents live there, securing the property for their own future use.
Communication
While millennials spend a significant portion of their day on their smartphones, when it comes to communication, they prefer the convenience of messaging to phone calls. So to get their attention, marketing needs to be on social media platforms and applications, submissions and payments must be fully digital. Millennials want to communicate on their terms and will find an agent when they're good and ready!
Property research
This generation begins their property search online and relies heavily on social media platforms to ask questions and find information about neighbourhoods they're interested in, property trends and house prices. Their extensive research includes online reviews and testimonials. Before making a decision, they will then find an agent to help them interpret all the information they've found.
With all their challenges to achieving homeownership, this generation is still looking to put down roots, own their own homes and start building wealth through property. Millennials are incredibly active in the local property market and agents should be aware of the new challenges and opportunities to successfully sell properties to this age group.
For more advice on buying, selling or renting, chat to the property professionals at Chas Everitt. You can reach us at our head office on 011 801 2500 or enquiries@everitt.co.za. You can also get more insight into the local residential property market through BetterBond's comprehensive Property Brief.
Author: Chas Everitt