It’s likely you’re not a millennial like most sellers in Australia. As a seller, you need to be prepared to deal with the expectations and perceptions of a younger generation about property.

Millennials: What you need to know

Nowadays, everyone seems to use the term “millennial” loosely. In 2022, the oldest millennial will be 41 years old and the youngest 26 years old, according to most demographers.

First-time buyers in Australia are often dependent on their parents for down payments – after years of saving.

It’s no secret that they’re aggressively entering the homeowner’s club and chasing the long-held Australian dream of owning your own castle. Currently, they are moving away from a “renter’s philosophy”.

One way to get millennial buyers interested in your property is to understand their mindset.

Millennials aren’t afraid to buy a home, as myths suggest

There is a common misconception that lifestyle is more important to millennials than owning their own home. In reality, this stereotype is completely false.

While millennials are still fervently pursuing the dream of homeownership, they are frugal enough to do so.

Currently, they make up the majority of employed people, and most of us have seen an increase in those in their late 20s and mid 30s purchasing homes.

Which types of property are millennials looking for in Australia?

There are three categories that millennials find particularly appealing: aesthetics, core features, and location.

You can use these tips to make your property more appealing to this generation of buyers in order to receive more offers.

Recent data indicates that 98% of millennials paid above or at the asking price for a home.

Core Features

Millennial buyers place a high priority on functionality, so any home’s special features will likely outweigh its aesthetics.

When it comes to buying a home, most millennials prefer homes to units since they believe they will receive a greater return when they decide to sell.

Millennials look for the following features:

An adequate number of bedrooms

Having a large kitchen.

Expansion potential

If they wish to modernize or extend a home, the plot size is important, as it gives them the best option.

Additionally, they’re willing to make improvements over time to make the home their ideal.

As a result, even though millennials are willing to renovate and improve, they prefer a house they can move into immediately.

Aesthetics

Home buying isn’t so much about beauty as it is about how these aesthetics make the space more functional for millennials.

French or sliding doors that allow indoor-outdoor flow, soft flooring that doesn’t require carpeting, and a property that requires less maintenance (and money).

As opposed to larger bedrooms, they prefer dining and entertainment spaces.

Location

The size and price of the property will influence the location of the property. In terms of pricing, millennials understand the importance of location.

City-dwellers who don’t want to compromise on their lifestyle will likely downsize their property size and live closer to sprawling CBDs or suburbs.

The millennial generation is far more interested in size and features than location, and won’t mind a commute from suburbia to work.

Usually, these are young couples looking to expand their families, while singletons and professionals looking for a stable residence in their current neighborhood.

Property purchases by Millennials: how do they work?

The millennial generation is much less likely to take part in auctions, especially if they intend to turn the property into an investment.

A buyer interested in building on a plot of land should avoid auctions.

Many prefer private treaties since their parents will be guarantors or putting up a significant portion of the deposit and can negotiate with them.

Millennials like the private treaty method of selling property because they’re not forced to make a decision right away – which gives them time to consider their decision and ask their parents for advice.

It is not uncommon for millennials to consider themselves planners, so they will be methodical when it comes to making an offer on a home.

In most cases, planners base their decisions on whether or not the property meets their specific needs.

Many buyers have written down a list of specific features they want in their new home.

Although older generations waited until marriage or long-term commitment to buy a home, millennial singletons are embracing homeownership simply because of its stability.

Lastly,

When selling a home in Australia, targeting millennials specifically may not always be ideal, but you can still make your home more appealing to this demographic.

By doing this strategically, you’ll still leave plenty of room for Generation X and Baby Boomers to find it appealing.