Millennials are finally starting to enter the real estate market, but as is expected with a generation as different as Gen Y, they’re buying homes in a completely different way. Millennial buyers intend to own for shorter periods of time and want to live in metropolitan areas, and they’re also actively interested in real estate as an investment.
If you want to sell your home to a Millennial, you’ll need to change the way you stage and market the house in order to make the sale. Here’s how you can make your home more attractive to Millennial buyers without having to plan a massive renovation.
Millennials Want Investment Properties, Not Storybook Homes
One of the major characteristics that defines the Millennial generation is that they are nomads. Millennials don’t want to hear about how a property is the perfect place for them to live out their Happily Ever After. For a Millennial, marriage and kids and the white picket fence are still a long ways off – and that’s if they’re in the picture at all.
Instead, present your home as the ideal investment property – something they can easily renovate and flip for a nice, tidy profit, or something they can rent out to help pay their student loans. Millennials are entrepreneurial by nature, so appeal to that entrepreneurial zeal.
Convert an Unused Room into a Home Office
Millennials are also very career-minded and tend to be passionate about side projects. Millennials are leading the charge in the work-from-home movement, and the more easily they can see themselves working out of your home, the more likely they are to buy it.
If there’s a room in your home that you aren’t using, converting it into a home office will help you show Millennials that they can run their online business in a great environment.
Ditch the Carpets and Opt for Hardwood Instead
Millennials want their homes to look modern, and carpets will simply make them think of every 1970s stereotype there is. If you want to reach a Millennial buyer, an easy way to make them see your home as more desirable – and more valuable – is to tear out your carpets and replace them with hardwood flooring. Hardwood is also easier to clean, which will appeal to their desire for a low maintenance home.
Millennials have traditionally been difficult to understand, but an experienced real estate agent can help you navigate their market’s demands and stage your home in an appealing way.
Please feel free to reach out to me if you have any real estate related questions.
Renting a home is a good option for some, but buying a home just might be the best thing for you. When you rent a home, you send money to someone else every month in exchange for knowing that you can call on your landlord when the roof leaks, an appliance stops working, or your bathroom faucet breaks. There are some big advantages to buying a house that will help you get out of your renting rut and focus more on your future.
Did you know that when you rent a home, you help someone else build equity? Any changes that you make with your landlord’s approval puts money back in his or her pocket. Keeping the yard clean and taking care of routine maintenance builds equity in that property. When you buy a home of your own, you have the chance to build equity of your own, which you can use to obtain a loan later.
Save On Your Taxes
When you rent a house, you cannot deduct the money you spend on your taxes. Though some states will let you make a small deduction based on the total amount you spend in rent each month, you cannot make any deductions on your federal taxes. When you buy a home, you can save with a few different types of deductions.
The federal government lets you make a deduction if your home is worth more than what you currently owe on your taxes. If you purchased your first home, you can make a deduction in regards to your property taxes. You can also deduct money that you spend on some renovations and energy saving appliances.
Put Your Personal Touch On Things
As long as you continue renting, you live in a home that belongs to someone else. Your landlord has final say over what you do and do not do. This often means that you cannot make repairs or significant changes without seeking approval first.
Owning a home lets you put your personal touch on things. You can paint the walls any colors you want, rip out the carpet to add hardwood flooring or even make significant changes outside to turn your new home into your dream home.
As always, I’m here to answer any questions you may have about owning a home, and what it takes if it’s your first time in the home-buying process.
The Miami-Dade County residential real estate market again experienced significant strengthening in the first quarter, as a result strong demand and limited supply particularly in the lower price points, according to the 27,000-member MIAMI Association of REALTORS® and the local Multiple Listing Service (MLS) systems.
Median & Average Sales Prices
In the first quarter, the median sales price for condominiums in Miami-Dade County was $162,000, an increase of 24.6 percent year-over-year and 4.5 percent compared to the previous quarter. The median sales price for single-family homes rose 17.5 percent to $205,650 in the first quarter compared to the first quarter of 2012, and 3.3 percent compared to the first quarter of 2012.
“The Miami real estate market is experiencing significant strengthening as we continue to see greater demand than supply,” said 2013 Chairman of the Board of the MIAMI Association of REALTORS® Natascha Tello. “While this trend continues to fuel double-digit price appreciation, countywide prices remain at 2003 levels, which makes our properties affordable compared to many markets in the U.S. and even to other world-class cities on a global level. Miami prices coupled with the local lifestyle and amenities is attracting both U.S. and international buyers and investors.”
Year-over-year, the average sales prices for single-family homes and condominiums increased 14.8 percent to $364,991 and 20.2 percent to $307,934, respectively.
Nationally, the median sales price of existing single-family homes was $176,600 in the first quarter, up 11.3 percent from the first quarter of 2012, according to the National Association of Realtors. The national median sales price for condominiums was $172,400, a 10.4 percent increase over the previous year.
Lawrence Yun, NAR chief economist, said many areas are experiencing a seller’s market. “The supply/demand balance is clearly tilted toward sellers in a good portion of the country,” he said. “Inventory conditions are expected to remain fairly constrained this year, so overall price increases should be well above the historic gain of one-to-two percentage points above the rate of inflation. If home builders can continue to ramp up production, then home price growth is expected to moderate in 2014.”
The statewide median sales price for single-family homes increased 13.4 percent to $153,000 in the first quarter, according to data from Florida REALTORS® Industry Data and Analysis department in partnership with local REALTOR® boards/associations. The median sales price for condominiums in Florida was up 18.4 percent compared to the same quarter last year at $116,000.
“The Miami real estate market is increasingly becoming more attractive for sellers, as properties sell rapidly when priced right,” said 2013 MIAMI Association of REALTORS® Residential President Fernando I. Martinez. “Strong demand is resulting in multiple offers even above asking price, and we are seeing greater increases for sales in the higher price points, while inventory in the lower price points has greatly declined. This reflects the fact that limited supply is hampering sales for more affordable properties.”
Inventory Levels in Lower Price Points Continue to Decline
Total housing inventory in Miami-Dade County decreased another five percent year-over-year. First quarter active listings in Miami-Dade County totaled 13,067. At the current sales pace, this reflects 5.1 months of inventory for single-family homes and 5.9 for condominiums.
In the first quarter Miami-Dade inventory of single-family homes listed under $200,000 saw the greatest percentage decreases. Available inventory in this range dropped 38.8 percent, from 2,677 to 1,636, compared to year-ago levels. Inventory of single-family homes listed at $600,000 or greater, rose 38.7 percent. The greatest percentage decrease, 43.6 percent, was for properties listed between $50,000 and $149,999, while the greatest percentage increase, 41.5 percent, was for homes listed at $1 million or more.
Condominium inventory of active listings dropped 33 percent for properties listed under $200,000 and increased 31 percent for properties listed at $600,000 or higher. The greatest percentage decrease, 70.8 percent, was for condominium inventory listed at $50,000 or less, while the greatest percentage increase, 44 percent, was for properties listed between $400,000 and $599,999. Sellers are becoming more aware of the attractiveness of the market.
Home Sales Exceed Record Levels
Miami-Dade residential sales – including existing single-family homes and condominiums – increased 4.6 percent in the first quarter, from 6,174 to 6,457, compared to a year earlier. Following two consecutive record-breaking years, sales in Miami continue to increase despite an inventory shortage. In the first quarter, Miami sales of existing single-family homes increased 10 percent compared to a year earlier. The sales of existing condominiums increased two percent compared to the first quarter of 2012.
Statewide closed sales of existing single-family homes totaled 48,976 in the first quarter, up 10.2 percent compared to the year-ago figure. Closed sales of condominiums totaled 24,655, up 3.2 percent compared to 2012.
Nationally, total existing-home sales, including single-family and condos, rose 0.8 percent to a seasonally adjusted annual rate of 4.94 million in the first quarter from 4.90 million in the fourth quarter, but were 9.8 percent above the 4.50 million pace during the first quarter of 2012.
Majority of Sales All Cash
In the first quarter, 65 percent of all closed sales were all cash compared to 66 percent a year ago. All cash sales were 47.9 percent of single-family home closings and 76.9 percent of all condominium sales. Since nearly 90 percent of foreign buyers pay cash, this reflects Miami’s position as a top market for foreign buyers.
Source: Miami Association of Realtors (miamire.com)