So, the story goes…

The average age of a mortgage loan originator in the mortgage industry remains around 50 years old, which is a reduction from 2018 statistics that report 53 as the average age. This means most professionals serving up mortgages are far from the Millennial mindset. Yes, for “us” to understand what the new generation of homebuyer wants, we first need to examine who they are and how they operate. Mortgage Women Magazine wants to help create some clear insight on how to capture this market share and to do so in a way that will convert leads.

Let’s start from a place of understanding the Millennial. In my online research on this topic, I went out to see what was generally evident, and I found an amazing article by Placester and writer Carolyn Berk. Known for their statistics, they offered a lot of valuable information I will be sharing here for all of us to consider.

The Millennial Make Up!

• 34 percent of homebuyers in 2019 are from this generation. So, their time has come, and they are the largest share of any other generation of buyers. Millennials are 36 years or younger in 2020, so that number will continue to grow.
• Traditional marketing tactics will not work with this group. They come from a digital world.
• 66 percent of this youngest group of buyers are buying their very first home. They need and want complete hand holding and as much education as can be offered.
• When polled, they say they do want to work with a realtor. So, this bodes well for us helping our referral partners convert this type of buyer.
• Single female buyers make up the 2nd highest buying group in this generation, ahead of single men and unmarried couples. So, a great target is women in this category.

They want education!

• There has never been a more important time then to plan and place many first time homebuyers classes in your marketing repertoire.
• Your empty home buyer workshops are not targeting the right people.
• Think about where your Millennial audience is and target that group for your seminars to fill seats.
• Traditional marketing for these events will not work.
• Affinity marketing plays a strong role here. Target 20 companies that employ Millennials and offer them in-office workshops.
• Go to where the Millennials are!
• Due to their digital mindset, you are far more likely to get them to watch a pre-recorded video and/or to attend a webinar that you hold on homebuyer education.

The cash conundrum!

• The primary source of Millennial homebuying down payment sources comes from “saving up over time,” and the second to that is “receiving a gift from a family member” or “obtaining a loan from a family member.” So, what does this part tell us about how we approach these buyers for assisting in the mortgage process?
  • We should plan to work with people in this category long term while they save. Incubation period will be long, if you catch this buyer as they are starting to think to buy. The great news is they are the largest part of our homebuying pool; so, if you load up these kinds of shoppers, then you are going to have an eventual windfall.
  • We should help them solve to this problem in our marketing by offering and advertising gift abilities. “We can help you to solve your down payment with guidance and education on how to buy your first home”. For many, this part is so intimidating it stalls the starting process. Your marketing nudge could be the difference.

They are helping us flip the script with realtors!

So, with all these statistics in mind, it’s a great opportunity to also assist them with finding a realtor. We know that grabbing qualified buyers and bringing those leads to realtors can change the entire game for an MLO to realtor relationships by helping mortgage companies be the foundation of incredible sources of business before realtors are even involved. This changes everything in the way of strengthening existing relationships with realtor partners and creating new ones!

Image matters!

Other statistics from Zillow tell us that “appearances matter to Millennials.” In a digital world where pictures and images are so vital to their interaction, they care about how homes look. So, this translates to the following tips:

• Staging should be a vital piece in every realtor presentation for homes they want to appeal to this group.
• Home improvements for sellers should include curb-side appeal and main living areas like kitchens, bathrooms and family areas.
• Homes that have big entertainment spaces like finished basements, media rooms, and bonus features such as wine cellars or finished outdoor living spaces matter.

Homes with the above features are far more appealing to Millennials and those spaces should be featured in the advertisements of these properties sales.

Image and influence will sell these homes and attract Millennial buyers! In fact, in January 2019, I had the pleasure of moderating Gary Vaynerchuk’s “Real Estate Influence” panel at the Miami Garden Stadium. On that panel was John C. Tolbert representing Four Seasons Hotels. He had just overseen the opening of their new Belize hotel, and he explained that their multimillion-dollar campaign was centered on a “lifestyle” campaign. So, realtors and mortgage companies that help feature “lifestyle” ads to this group will attract both buyers and sell more homes with this marketing approach.

Shop til they drop!

Millennials like to shop, so mortgage originators need to add an ongoing sales lecture to assist their realtors in getting loyalty out of these new shoppers. Every mortgage rep should explain the following to a millennial buyer:

• Stick with the realtor you start with
• They can show you any home despite the advertisement realtor on the flyer, ad, or digital commercial
• You stand to have a better experience with a sole realtor representing you
• You don’t pay for the realtor, so allow them to bring you to do the heavy lifting on someone else’s dime
• The reason another realtor is shown on home ads you want to see is they represent the seller
• Your realtor has access to all listed homes

Mobile Millennials…

Last but not least: Millennials want a mobile and digital experience.

There has never been a better time to offer digital solutions to buyers than now. Fintech companies are growing and thriving. Many mortgage companies are evolving with digital classrooms and webinar-based education, but where else does mobility intersect with these kinds of buyers? The answers are endless. Companies that help these buyers stay mobile and provide solutions for starting and enduring the process will win market share. I would ask you, is your mortgage company evolving in this area?

A happy ending!

The beautiful ending to this story is that for many years this group has been overpredicted as it relates to their contributions to the mortgage and real estate activity; and, as such, they’ve taken a bad rap for their contributions to our economy in this realm. However, this same group was growing up and watching the darkest moments of mortgage history when they were first becoming news reading adults. Their first introductions to our industry where one filled with fear and trust issues followed by an idea that we were not operating in a safe and sound manner. Time has healed these wounds and this perception. They are now overcoming those fears and can see the greatness that is ahead for them with homeownership.

Yes, the bright day has come and will continue by all predictions. For those mortgage companies that put a marketing focus on this, there will be market share to grab for all.

Bring on the Millennials we say, come one come all!

Christine Beckwith is a 30-year mortgage industry veteran who has broken many glass ceilings and blazed a trail for many female professional generations to come. She is a Mortgage News Network anchor and the president & COO of 20/20 Vision for Success Coaching. This year she was featured in the 2018 Mortgage Professional America magazine as one of the top 75 women in the mortgage industry and named one of the “2018 Most Connected Mortgage Professionals in America” named by NMP magazine.