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What home sellers need to know about appealing to millennial buyers

January 18, 2018 by Kathy Reichle Leave a Comment

Millennials make up more than 50 percent of all first-time home buyers and represent a growing segment of the Washington-area population. These young professionals and activists are looking to make their mark on the world at the epicenter of American politics and culture.

Despite lingering college debt, millennials hold a significant amount of buying power and many see the value of investing in a home versus renting. As products of the information age, they are more committed than their predecessors to the search process and are eager to absorb information from peers, reference sites and, of course, local real estate professionals. Their mobile lifestyle coupled with their innate curiosity will likely result in pursuing real estate transactions more frequently than generations before them, buying and selling at an even higher rate.

To underestimate the millennial influence on the Washington real estate market is to bypass a major opportunity. Here are a few things sellers need to know about millennial buyers and what they look for in a home:

Call it the Instagram effect, but millennials are in search of the “picture perfect” home. They’ve grown up watching house tours on HGTV, scrolling through Instagram photos of perfectly staged homes and making Pinterest boards of their dream home. And while the DIY trend has its appeal, not everyone has the time or resources to take on a fixer-upper.

Busy with work, community causes and social activities, most millennials don’t have time to tear down, remodel or replace. They are looking for a home that is move-in ready — the ideal aesthetic, with little to no maintenance. While some buyers may be willing to take on deferred maintenance in exchange for a price cut, millennials are less likely to go for this. They want a home that looks and operates in ship shape so that they can focus their time on work, travel and political and social engagement.

 

The right home at an affordable price

Millennials came of age in the housing crash of 2007 and the subsequent recession of 2008. When they entered the workforce, they faced a post-recession job market and their salaries are just catching up. Today, low interest rates have made ownership more affordable with payments comparable to monthly rent, especially in the Washington area.

These factors and experiences continue to inform millennial purchasing habits — they are looking for great value at an affordable price. As the first generation of digital natives, they have a knack for scouring the Internet to research and find the best price on everything from clothes to groceries. The way they shop for homes is no different  — they will take their time and do their due diligence until they find the perfect house for the right price.

The generational difference

Each generation of home buyers has its own unique set of values and priorities. Gen X-ers and baby boomers were more willing to overlook deferred maintenance issues in return for a better price. A broken dishwasher? Probably not a dealbreaker for a baby boomer. They would fix it, save to buy a new one, or negotiate appliance costs into the sale of the home. In contrast, a millennial might walk away from an otherwise great property to avoid the hassle of repairing or buying new.

The social and cultural value of a property is another factor to consider when looking to attract millennial buyers. While Gen X-ers and baby boomers tend to prefer the privacy of the suburbs, millennials want to be in the middle of the action, with a bevy of cultural, food and entertainment options all around.

Winning the millennial buyer

So how can sellers catch the eye of millennials? Since millennials are looking for move-in ready properties, it’s critical to stay on top of regular maintenance. Sellers should make any necessary updates, such as exchanging old kitchen appliances for stainless-steel appliances, replacing carpet with hardwood floors or adding outdoor living features — before listing on the market.  If sellers are not able or willing to make updates, they should consider lowering the price of their home — according to market values — to compete for millennial buyers.

As the millennial presence in Washington continues to grow, sellers should work with their real estate agent for guidance on how to update and market their home to tap into this new audience. Though different than the generations before them, they hold significant buying power and are eager to engage in the home-buying process.

David Charron, chief strategy officer of Rockville-based multiple-listing service Bright MLS, writes an occasional column about the Washington-area real estate market.

 

Filed Under: A Positive life, Amazon, Eastside Real Estate Blog, First Time Homeowner, Google & FaceBook, Greater Seattle Jobs, Issaquah Real Estate, Microsoft, Millennials Tagged With: Home ownership, Home Trends, Millennials, Trending Topics

Microsoft announces massive expansion to Redmond campus

December 8, 2017 by Kathy Reichle Leave a Comment

This artist rendering shows the Microsoft planned redevelopment, including the removal of 12 buildings and the construction of 18 new ones, along with open spaces and sports fields. Courtesy of Microsoft

Microsoft announced Nov. 30 that it will begin construction on a massive overhaul and expansion of its facilities in Redmond.

Microsoft, which settled in the city in 1986, will be replacing portions of its campus and creating 18 new buildings.

This will include a total of 6.7 million square feet of renovated workspace — of which 2.5 million will be new — $150 million in transportation infrastructure improvements, new sports fields, public spaces and green space.

Once it is finished, the Redmond campus will have 131 buildings that will house 47,000 employees and room to expand and accommodate 8,000 more.

“It’s an investment that’s good for our employees, good for the Puget Sound community, and makes good sense for our shareholders,” Microsoft President Brad Smith said on the company blog with the headline, “Investing to grow right here at home.”

Smith added, “We are not only creating a world-class work environment to help retain and attract the best and brightest global talent, but also building a campus that our neighbors can enjoy, and that we can build in a fiscally smart way with low environmental impact.”

The project will break ground in the fall of 2018 and take between five and seven years. It is slated to come online around the time Redmond receives its Light Link rail stations in 2023 and 2024.

A pedestrian bridge will link the campus to the light rail stations.

Redmond Mayor John Marchione praised the expansion and the company’s decision to continue expanding in the city.

“The reimagining of the Microsoft campus highlights their global leadership in technology and strengthens both Redmond’s and the regions reputation as a hub for ingenuity,” he said.

“We prize our relationship with the city of Redmond and will work closely with officials on the approval for campus and building architectural designs, engineering, building permit review and land use code compliance. As a Zero Waste Certified campus we will continue to focus further on waste-reduction initiatives,” Smith said.

The announcement has also received praise from county officials.

King County Executive Dow Constantine released a statement on Microsoft’s decision, as well.

“Microsoft’s bold investment in 2.5 million square feet of new office space demonstrates the company’s clear understanding that this is the best place in the nation to grow,” he said in the statement. “For more than 30 years, Microsoft has fueled a regional economy built on knowledge, innovation, and creativity. With this major new investment in its Redmond campus, Microsoft strengthens its partnership with King County, it’s commitment to Central Puget Sound, and our future as a leading global technology center.”

The renovations include modernizing office spaces.

When it was built, identical offices and natural light were incorporated into the design but the buildings also have low ceilings and many hallways, a press release from Microsoft said.

The rebuilt campus will focus on a more communal space for employees.

It will feature a two-acre plaza with space for up to 12,000 people to gather and various sports fields, including a cricket pitch.

“As Microsoft continues to create the tools and services that are shaping the future of work, we can’t think of a better time to modernize our campus into a model of ingenuity and innovation,” Smith added.

OneRedmond CEO Bart Phillips offered some insight into Microsoft’s expansion.

“Microsoft’s decision to reinvent its campus for its future growth reconfirms Redmond’s and the region’s attractiveness and support for innovation and talent. This is a huge boost for Redmond and the Seattle region,” he said. OneRedmond, a public-private partnership, serves to promote development in the city.

The land which the campus is located on was originally one of Puget Sound’s largest chicken farms and a ranch owned by Italian immigrants, according to the Redmond Historical Society.

By Aaron Kunkler

Filed Under: Eastside Real Estate Blog, Microsoft, What's Trending Tagged With: Home value boosts, housing prices, Trending Topics

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Larry & Kathy Reichle

371 NE Gilman Blvd. #160
Issaquah, WA 98027

Phone: 206-999-1690

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Eastside Real Estate Blog

The Cost Of Purchasing A Home In The U.S. Increased 55% Last Year. But It’s Still A Great Time To Buy A House For These Five Reasons

I’ve always been all-in on homeownership. Yet, for the first time in two decades … Read More

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