How to attract Millennial Buyers when selling your home
According to the Australian Bureau of Statistics’ Survey of Income and Housing 2017/2018, approximately one-third of people aged 25 to 34 owned a property in 2018. As the millennial generation are finding it difficult to purchase their first home all across the world, this group of homebuyers is perhaps even more pedantic about what exactly they are looking for than the generations that came before them. Millennials don’t just know what kind of property they are looking for, but also consider the investment value a particular property has, and the potential it has to reap a good profit, should they decide to sell later on.
Locally, the millennial generation has entered the Australian property market in a big way, and no less than 9,606 home loans to first home buyers were approved in December 2019. Much of this boom in new buyers can probably be ascribed to the First Home Loan Deposit Scheme, a government initiative that came into effect on 1 January 2020, and provides a guarantee to 10,000 first-time homebuyers, enabling them to purchase a house without needing to pay for lenders mortgage insurance – and with a deposit of as little as just 5%.
The presence of millennial buyers provides a unique challenge to property sellers to impress a fresh group of property investors. However, marketing to a younger group of buyers with highly specific requirements means that home sellers have to take a different marketing approach. If you are looking to target this lucrative new market when selling your home, here are 10 upgrades that are likely to appeal to millennial homebuyers.
1) A home office space
Both in the world of freelancing and more corporate set-ups, the trend of working remotely is on the increase. No longer is the study a place that Dad retreats to for some peace and quiet – more and more, the home office is becoming a place where people work to earn their bread and butter.
Nowhere is this trend more prevalent than among the millennial generation. Incorporating a home office space into your house, even if you aren’t currently using it yourself, should almost certainly make an impression with millennial buyers. When the property is on show, consider staging one of the rooms in the house as a home office.
To millennials, this space, which separates the rest of their home from the area they work in, is essential to making a living and, as such, is a room you should not disregard. In fact, your real estate agent will probably use the home office as one of the big bargaining chips when potential buyers come to view the property.
2) Smart tech
Smart homes are not just a figment of science fiction anymore. From smart thermostats, to smart doorbells and lighting, almost every household is now in some way connected to the Internet of Things. First off, potential buyers will want to make sure they can connect to the internet, but you can bargain that this generation will also be impressed with other types of home automation systems.
Smart (short for Self-Monitoring Analysis and Reporting Technology) home systems like security and monitoring systems, door locks and home energy monitoring systems make life a little simpler for a group of people that is almost always connected – and these improvements don’t always cost an arm and a leg. Ask your real estate agent which smart technologies usually go off well with young or first-time buyers.
3) Energy-efficient appliances
When selling a home in the 21st century, it goes without saying that the efficient use of energy is a global burning point. For this reason, millennial buyers might be more likely to opt for energy-efficient appliances, instead of the out-dated fridge or stove that drains power faster than you can say “climate change”.
The millennial generation is especially attentive to their energy usage, and increasingly choose the eco-friendly option over its power-hungry ancestors. Upgrading to energy-efficient appliances might not be the cheapest option, but it is very likely to make a younger buyer much more interested in acquiring the property.
4) A game room/gathering space
Say goodbye to the Man Cave, and welcome the game room. Young families typically look for a space in the home where everyone can gather and blow off some steam, and a game room or other similar gathering space is sure to speak to this need.
When staging the home, try to make one room seem like the ideal place to relax with friends or with the rest of the family. Doing this is as simple as creating a warm and welcoming ambience with comfortable couches, and decking the space out with all the home entertainment appliances you currently own. You might even consider just rearranging your current living room.
5) USB outlets
As smartphones have become an essential part of our daily lives, we have also started building our homes in a way that facilitates the most efficient use of these devices.
One can now buy power outlets that also have a space where USB outlets can be connected. Especially in rooms where phones are often used, like the kitchen (for easy access to that great recipe they’ve wanted to try out), the living room, and the bedrooms, these outlets are bound to leave an impression with millennial buyers – and replacing your current outlets with outlets that also allow a USB charging connection won’t break the bank.
6) Neutral colours
Millennials didn’t grow up in the 70s and will turn their noses up at colour palettes that scream instead of whispering. As such, sellers should consider choosing neutral colours when repainting the house before prospective buyers come to view it.
In this vein, sellers should go for soft neutrals like creams and whitewashed grey variations. In fact, a neutral palette appeals to most buyers, no matter what generation they are part of, and immediately give the property a squeaky-clean appearance.
7) Modern design
If you decide to upgrade the permanent fixtures in rooms like the bathrooms or kitchen, opting for modern fixtures is definitely more likely to appeal to the millennial buyer. Out-dated colour schemes and appliances have made way for sleek surfaces and modern features, and these will be all the rage among a younger group of buyers.
A minimalist approach with sleek and simple lines is key here. Like with all home staging, you want prospective buyers to imagine themselves in the space, and a modern design approach will speak to the generation that it represents.
8) Outdoor living space
All Aussies value the outdoor space of their property. This is where the barbie is lit for long evenings spent with friends, and you don’t want this crucial part of your property to go unnoticed. When discussing home improvements with your real estate agent, they might suggest adopting a décor and design approach that makes the outside of the property feel like an extension of the home – and they’ll be right.
Millennial buyers want to invest in a space that can truly become their home, the home of their family and pets, and a place to gather with friends. Even if the rest of the property has been renovated extensively, a run-down backyard that doesn’t seem inviting is enough to put millennial buyers off immediately.
9) Garage outlets
Many garages have sparse and uncomfortably placed power outlets, which won’t appeal to millennial property buyers who drive electric vehicles. If you are looking to impress this tech-savvy, environmentally aware group of buyers, you’ll do well to have an electrician add power outlets that can specifically used for charging cars. It’s a relatively cheap improvement, but young buyers will definitely appreciate this touch when it is pointed out to them.
10) Storage space
Storage space isn’t just important to millennial buyers. In fact, most homebuyers will be put off by a lack of built-in storage in the house, already anticipating that they’ll have to spend money on alternative storage space or furniture. For this reason, consider adding closets in rooms that don’t have them built in, and also look for multifunctional pieces of furniture that can double as extra storage space.
The property market is always in flux, and as a new generation enters it, it needs to adapt with the times. Renovating and improving your property to appeal to millennial property buyers means taking a different approach and rethinking what will speak to buyers.
For millennials, technology reigns supreme, and smart, energy-efficient improvements are sure to make an impression. This group, that is increasingly starting to do their work remotely from home, will look for a space that facilitates efficiency and productiveness, but also provides a space where their families and friends can kick back and relax. A neutral colour palette, modern design and appliances, as well as a comfortable outside space which seamlessly ties in with what’s going on inside is a good start.
Let your real estate agent take a look at your property and recommend improvements that won’t break the bank, but will do a lot of the legwork of appealing to a younger group of buyers. Still looking for a real estate agent that understands what young buyers are looking for? Let Perfect Agent recommend an agent that can help you sell to millennials – fast.