There's an understandable obsession with the Millennial generation: They're now the biggest segment of the U.S. population, at a whopping 87.2 million. Mortgage Loan Officers and Realtors understand that they're the largest group of homebuyers to flood the market in history and appropriately, there's a lot of analysis, focus and incentive to understand Millennials as consumers so they can capture them as customers.
Evaluating your target prospects and the marketing materials you use to approach them is something all companies, MLOs and agents should do on a regular basis; but there's a lot more to know about Millennials than just who they are… industry professionals need to understand what they have coming.
Besides the arrival of the biggest group of buyers to ever hit the housing market, another wave is coming that will be a financial game-changer in the next couple of decades: A wealth shift of epic proportions. The U.S. Census and Labor Statistics Bureaus estimate that over $30 trillion will transfer to Millennials in the next couple decades in the form of inheritances. That's a lot of down payment, vacation property, second home and move-up money.
We know the home buying cycle is longer for Millennials due to things like their desire for knowledge and tendency to research and explore options far in advance of when they're actually ready to transact.
In many cases, MLOs and Realtors are courting Millennials as first-time home buyers via co-marketing, drip campaigns, open house marketing and other methods. While industry professionals need to have patience and reach out to Millennials appropriately, it's impossible to effectively connect, be consistent and convert these leads without a great system in place. MLOs and their referral partners must not only constantly assess, organize and manage their marketing tools, but also the leads they're marketing to.
Success in today's market climate depends on having a great system, a process in place and current, cutting-edge marketing messages and materials that resonate with where prospects are today and lay the groundwork for the possibilities of tomorrow. A buyer you're working with who's squeaking into a first home now could be making an inheritance-fueled quantum leap in a few short years.
Are you prepared to consistently communicate over time with Millennials after that first sale, providing household finance, housing market and other great information that reminds them you're not only "in the business," but a committed professional and valuable resource?
In addition to being our largest U.S. population segment, Millennials are in a position to become the wealthiest as well. Make sure you have a plan, system, tools and support to maintain your relationship with Millennial clients and take it to the next level: Repeat and referral business. If you're not prepared to manage and deploy multiple, high quality and relevant marketing materials that address a variety of leads and contacts in different situations, this tremendous opportunity could end up in your competitor's database.