Millennials are key players in today’s real estate market. Many young Canadian buyers are relocating to cities like Toronto as a part of the country’s tech boom, and are leveraging technology in making their purchasing decisions. Millennial buyers have shown different consumer behaviour compared to older purchasers, placing new demands on the developers and sales teams they are buying from.
Here are a few of the ways technology is changing the way millennials buy new construction:
Buyers want more—and better—information
Millennials are hungry for information. In a 2017 report, the National Association of REALTORS found that over 95 per cent of purchasers used online sites to search for their new homes, and over 50 per cent found the homes they eventually bought online first. Information about markets, neighbourhoods, floor plans, and pricing are expected to be more accessible. By releasing up-to-date pricing, availability information, and making sure your marketing plan is seamless, you can create urgency and generate buyer trust, ultimately making it easier for millennial buyers to make a decision.
Selling doesn’t rely on the sales centre
While brick-and-mortar sales centres and launch events are still the norm in many cases, more purchasers are choosing alternatives when interacting with a sales team. Virtual reality tours and visualization experiences are growing in popularity, and some developers are launching projects with no sales centre at all. Millennials are referred to as “the convenience generation”, preferring efficiency over more time-consuming processes. If a millennial were buying from out of town, they wouldn’t want to go out of their way to drive to a sales centre. Through cloud-based sales and platforms like Daypack, more sales teams are holding meetings through video calls, bringing the sales centre to the buyer and closing deals remotely.
Online shopping is becoming more popular
According to a study by BOXT, over half of all British millennials prefer shopping online. Redfin has also concluded via an online survey that 45 per cent of buyers made offers on properties without viewing them in person. Growing up in the internet age, the millennial generation is extremely comfortable with technology and trusting services’ feedback mechanisms, unlike baby boomers who tend to worry more about privacy and data security. millennials conduct their lives online, from social interactions to major financial transactions to shopping for groceries. Making pre construction purchases online, now a reality, is no exception.
Reputation and buyer experience matters a lot
Research has shown that almost 90 per cent of purchasers trust the opinion of friends or family members more than brands, and over 84 percent of millennials trust online reviews as much as friends. Millennial buyers expect more from their service providers. While a one-star rating could jeopardize a deal within a competitive market, a glowing review could not only seal the deal with one buyer, but result in referrals, generating exponential business down the road. Here, BuzzBuzzHome’s EVP, Kiyoko Fujimura, suggests to builders a few ways to make sure you’re making the most of your online reputation.
Header Photo: James Bombales