According to the latest research by Engel & Völkers, most of North America’s luxury home buyers are now Millennials. In fact, this generation now makes up 59% of peak luxury buyers (those looking to buy a home above the $3 million price point).
At the same time, this emerging generation of luxury home buyers is a slightly different breed from affluent buyers of the past. Not only do they tend to be digitally savvy and embrace new technology, but they’re also looking for homes that are as eco-friendly as they are centrally located.
So, what are some things luxury real estate agents can start doing to appeal to this growing segment of affluent buyers? Let’s dive in.
Get Digitally Savvy
Today, Millennials rely on online platforms and social media for carrying out their property research, conducting virtual tours, and even engaging in interactions with real estate professionals.
With this in mind, you need to make sure that you have a strong web/social media presence and that you are easily accessible on popular platforms, including Facebook, Instagram and LinkedIn.
Focus on Eco-Friendliness
Environmental consciousness has become absolutely essential to Millennial buyers. As a result, these buyers are more drawn to properties with sustainable and energy-efficient features because they are looking for ways to reduce their own carbon footprints.
As a real estate professional looking to appeal to Millennial buyers, you should get into the practice of noticing eco-friendly features in homes. Some of the most popular sustainable trends in luxury homes today include bamboo/cork flooring, solar panels, high-efficiency HVAC systems, and water-conserving appliances.
Prioritize Location and Convenience
Millennials also value location and convenience more than other generations of affluent buyers. This means that they tend to be looking for walkable neighborhoods, access to public transportation, and proximity to urban centers.
Likewise, they seek properties that offer a blend of luxury and convenience, allowing them to balance their work and leisure as they see fit.
As a luxury real estate professional, you’ll be wise to prioritize these features when representing Millennial buyers. Remember that it’s no longer about simply finding the home that checks off all the “must-haves,” but honing in on the perfect home that’s also in the perfect location.
You may have your work cut out for you in this regard, but getting to know some of the top affluent neighborhoods for Millennial buyers will pay off in the long run.
Embrace Smart Home Technology
In line with their digitally connected lifestyle, many Millennial buyers are also looking for properties that are already connected to “smart home” technology as a means of making their lives easier and more convenient.
Integrating advanced technology and smart home features is appealing to this segment of buyers, so be on the lookout for these kinds of upgrades in the listings that you peruse.
Some examples of smart home features that Millennials love include smart appliances, automated utilities, AI-controlled entertainment systems, and voice-controlled lighting.
However, this only scratches the surface of what’s out there, as new technology and upgrades are constantly hitting the market. Stay up-to-date on the latest smart home advancements to best represent your base of Millennial clients.
Explore VR and Remote Transactions
In keeping with their quick adaptation to new technology, it should come as no surprise now that Millennial buyers have also begun to embrace virtual reality (VR) and remote transactions in their real estate searches.
Specifically, this segment of buyers is already comfortable with virtual reality technology and thus may be more open to remote real estate transactions that include virtual tours and even e-signing of closing documents.
If you aren’t already familiar with VR technology and how it works in the world of real estate, now would be the time to get yourself acquainted with it. From there, you might consider offering virtual home tours of luxury properties when possible.
If you’re not already using e-signing software to take the hassle out of signing paperwork and other documents, now is also a good time to make the switch.
Your Millennial clients will enjoy the convenience of being able to sign and send documents off from their own devices (such as smartphones and tablets) rather than having to sign and return paper copies.
Start Appealing to Millennial Clients
With numbers of Millennial home buyers continuing to grow, now is your opportunity as a luxury real estate agent to hone in on a new client base. By following these practical tips, you’ll be well on your way to growing your list of clients and building a strong referral network in the process.
And if you haven’t already joined the Institute for Luxury Home Marketing (IHLM), there’s never been a better time to become a member.
By doing so, you’ll gain access to a new world of market insights, networking opportunities, and other guidance that can help you elevate your success in the luxury real estate market. Learn more about joining today or reach out to our team with any questions you may have.
Comments
Great article! It is indeed very important for real estate developers to adapt to these changes in order to appeal to the new generation. The faster we adapt and develop, the better. Very useful resource and a must-read article for everyone in the real estate industry. Good Job!