5 Things Millennial Home Buyers Look For

Millennials have entered the housing market and have ideas about what they want in their new home. Home design trends are becoming more innovative and reflective of the way we live today. These young home buyers want bright homes which are informal and inviting; places where friends and families can gather and relax together. Who Are These Millennial Home Buyers? Millennials are also the first generation that grew up on technology. Most never knew a home without a computer, video game console, or cell phone. They want their spaces to be intuitive and innovative. They buy “smart” products! Self-adjusting blinds, lights, appliances, and other home features appeal to their sense of a technologically advanced home. Homes are being built with these buyers in mind.

Top 5 Home Design Features

1. Urban designs, such as a large loft-style home with great flow

2. DIY Fixer-uppers: Millennials enjoy getting dirty and redesigning their home to suit their tastes

3. Light and bright with tall ceilings and lots of natural light

4. Smart Home devices and features

5. Sustainable materials such as reclaimed wood and energy efficiency.

As they continue to make up a greater portion of first-time home buyers, builders will be creating more and more homes that reflect their unique perspectives. Watch for more innovation, sustainability, and functionality in new home designs over the next decade.

Getting Outbid? Strategies to Make Your Offer Stand Out and Get Accepted

Summer is traditionally a busy time for buyers and sellers. This year has been no exception—and with lower interest rates, many homebuyers are finding the competitive environment challenging. With multiple buyers competing for properties, even terrific offers are often being outbid. Fortunately, there are some things you can do to make your offer more attractive to the sellers and increase the chances of getting the property.

• Have Full Pre-Approval – A step beyond pre-qualification, a pre-approval involves submitting your full application to underwriting. Your lender will collect all your financial data and submit for review. This is stronger than a pre-qualification; a pre-approval requires the buyer to provide the proof of their ability to qualify for the loan.

• Increase the Earnest Money – Earnest money is the deposit held in escrow. While the contract will dictate how monies are disbursed in the event of a cancellation, increasing the amount offered can show the seller you’re serious.

• Add an Escalation Clause – In a bidding war, it can be difficult to know what to offer because you want to outbid the competition without going too high. An escalation clause is one way to automatically outbid the others. The clause typically offers an amount—$1,000 for example—higher than any verifiable offer up to a specific amount. This can ensure yours is the highest offer.

• Pay any Appraisal Shortage – When offering more than asking price, sellers become concerned about the appraisal coming in too low. If you are willing to pay over market value, include the amount of shortage you are willing to pay.

• Remove Inspection Contingency – This option can be tricky, but if you are planning a large remodel or are willing to tackle any defects found, then you can make your offer stronger by accepting the home as-is.

In this fast-moving, competitive real estate market, it’s important to make your offer stand out from the crowd. These strategies are great ways to demonstrate to the sellers that you’re serious about buying their home, increasing the chance of having your offer accepted.