Generation Z is the generation that never knew a world without smartphones or the ability to pause, skip, and rewind live TV. They are innovative, diverse, tech savvy and entrepreneurial. They are eco-conscious, strong advocates for mental health, and have mastered the art of the perfect selfie. But they’re also one of the largest groups of homebuyers on the market, and if you’re going to sell property this year, you have to understand this very specific demographic.
What Gen Z Buyers Expect from a Real Estate Agent
The good news for real estate agents is that a majority of Gen Z homebuyers plan to use an agent to help them buy a home. While they’re extremely tech savvy and can effortlessly use the internet to help them research the local market, they also understand the benefits of using a professional. Most Gen Z buyers are looking for a real estate agent who shows local area expertise and can get them into a neighborhood that matches their lifestyle. They want to work with someone who has the inside scoop about the coolest places to eat, drink, and shop in the area. They want someone to help them find a neighborhood or apartment community that is close to everywhere they want to be. They expect their real estate agent to know the walkability score of an area, and how close they are to public transportation. If you’re going to connect with these buyers, brush up on your local neighborhood knowledge.
Gen Z Buyers Expect Online Reviews
Gen Z buyers rely heavily on online reviews. They check online reviews for almost everything they buy, from tacos and technology to airline tickets and real estate. If your website doesn’t include authentic and current reviews, it could send up a red flag for these reputation-conscious buyers. Make these reviews easy to find on your website, and make sure you reply to them. This will give potential clients an opportunity to hear what other happy clients have to say, and will also give them a peek into how you respond and handle both positive and negative reviews.
Gen Z Buyers Communicate Differently
Communication between an agent and client is crucial in the real estate industry. Most buyers in this demographic prefer text over phone calls, and while they use Tik Tok and Instagram regularly, you won’t find them actively on Facebook. To connect with Gen Z buyers, offer multiple avenues of communication. And as the generation who has never been without instant access to information at their fingertips, they’re less patient when it comes to waiting for a response. They move quickly from one communication method to the next, and expect their real estate professional to be able to do the same.
Gen Z Responds to Marketing Differently
You won’t generate a lot of interest from Gen Z buyers by putting out newspaper ads or other traditional marketing techniques. They consume most of their marketing and advertising from their smartphones and laptops while they’re scrolling their favorite social media platforms. They also trust the referrals and reviews of their friends and family, and prefer ads that feature real people and real experiences. They respond better to a more personalized marketing strategy vs something that feels too scripted or contrived–especially when it comes to one of the biggest investments they’ll make in their lives. Another way to authentically market yourself to this generation of buyers is to be active in their communities. Part of your marketing strategy should include partnering with local businesses, volunteering, and donating money to programs and initiatives in the local area. This younger generation will notice and appreciate your willingness to get involved.
They Manage Their Money Differently
The oldest Gen Z’s are beginning to graduate from college and start their careers. On average, they make anywhere between $50k-$60k their first year out of college, and don’t have a lot of expendable income as first time homebuyers. Their starter homes usually cost under $170k, which is significantly less that the national median price of $300k. When it comes to down payments for their first home, they’re putting the minimum amount down (between 3-5%) which means they have to budget PMI into their housing budget. This generation of buyers would rather splurge on travel and experiences than on a luxury home, and are more open to buying a fixer-upper.
Maximize Your Marketing
Understanding how to connect with Gen Z buyers is just one thing top real estate professionals can do to reach next level success in 2021. Mbition offers interactive and engaging online classes for new and seasoned agents to help them learn how to market more effectively, earn more business and advance their careers.