New data from the National Association of REALTORS® suggests that Millennial home buyers pay more for homes as compared to other age cohorts.
The data comes from the 2018 Home Buyer and Seller Generational Trends report which shows that 44 percent of Millennial home buyers paid the MLS asking price for their home or higher.
This statistic is counter-intuitive.
It could even be argued that younger buyers glean more information online than older ones; and that because information dissymmetry is lower between Millennial buyers and their sellers, Millennial buyers should get “better deals”.
But that’s not happening.
And, what is different between Millennial buyers and other age groups is how Millennials choose their real estate agent representation.
In the National Association of REALTORS® report, when asked what factors are most important in choosing an agent, more than any other age group, Millennials said that they want their real estate agents to be great negotiators.
However, the two areas in which they assigned the least importance are the agent’s experience in real estate, and the agent’s knowledge of a given neighborhood.
So, maybe it does make sense that Millennials pay more for their homes: their agents are mostly new to the business, and don’t have knowledge about the homes they’re trying to buy.
That’s a terrible combination of traits for the person you’ve entrusted to negotiate your purchase of a home. Buying a home is about more than the house itself. It’s about having a good team on your side, too.
Talk to two or more real estate agents as part of your home buying experience and get a feel for who can help you best, because nobody wants to overpay.
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