How to woo younger homebuyers

By Michael Estrin of Bankrate.com

The millennial generation is becoming an increasingly important part of the housing market. According to a 2013 National Association of Realtors study that looked at generational housing trends, millennials (or, Generation Y), those born between 1980 and 2000, are the second biggest segment of the buyer market, behind only Generation X, which covers those born between 1965 and 1979.
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Together, these two generations represent today's young buyers, and broadly speaking, they tend to fall into one of two categories, says Margie Gundersheim, a real estate agent with Keller Williams in Newton, Mass.

"They're young professionals who prefer a turnkey home that needs little or no work," says Gundersheim. "(Or they're) creative/romantic buyers who want to invest sweat equity and money over time, and put their personal stamp on the property and add value for the future."

But while those two groups may seem like they want entirely different things from a home, many agents say that younger buyers of all stripes have a lot of the same "must-have" features on their lists.

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Updated kitchen and bath

We all want to buy a home with new kitchen and bath fixtures, but new fixtures are especially important for today's young, budget-conscious buyers, says Jack Curtis, a real estate agent in Dublin, Ohio.

"The primary reason younger buyers seek updated kitchens and baths is because they have limited budgets," Curtis says. "Most of their savings will go toward the down payment and furnishings. Kitchens and bathrooms are also the most expensive parts of a home to update, and young homeowners cannot afford to sink a lot of money into those areas."

While updated kitchens and bathrooms may bring in a younger crowd, remodeling costs should give a seller pause. After all, if those updates aren't in a young buyer's budget, they probably aren't in a seller's budget either. Unlike a new roof or plumbing, bathroom and kitchen fixtures are also a matter of taste, so not every buyer will like what you pick, according to Curtis.

Big kitchen, open floor plan
Neighborhoods that are up and coming

A generation ago, formal dining rooms may have been on every buyer's wish list. But today there really isn't much appeal to the formal dining room, according to Lou Cardillo of The Lou Cardillo Team in Yorktown Heights, N.Y.

"The kitchen has become the hangout room along with the family room," says Cardillo. "An open space that can easily transition from kitchen to TV room is high on the list of the perfect home for young buyers. In essence, the kitchen is the new living room."

Along similar lines, Curtis says today's young buyers are also more attracted to an open floor plan, rather than a layout that compartmentalizes the home. Again, the reason has a lot to do with how younger homeowners entertain.

Home office

More than 13 million Americans work from home, and all signs point to that trend continuing, which makes a home office important for many buyers.

"Home offices have vast appeal," says Paige Elliott, a real estate agent with Dave Perry-Miller & Associates in Dallas. "Most agents will point out that a room could be used as an office or other flex living space, especially if it is currently used or staged as a bedroom."

Home offices aren't just for those who work from home full time, according to Cardillo.

"As technology continues to make us more mobile, young buyers have more options than ever to work from home, depending on their job," says Cardillo. "Having a dedicated space is important because it will help keep them focused and concentrated on work while they are at home on a Skype call, planning a presentation, setting up their workday or simply paying bills."

Good location
Neighborhoods near highway access

Younger buyers tend to see location differently from their parents, who didn't face high gas prices and traffic, says Allison Nichols, an agent with Related Realty in Chicago.

"My younger buyers look for properties that are in proximity to public transportation and that have a good walking score," Nichols says.

But there are young buyers, and then there are young buyers with children. The former group may prefer to be close to the action of the city, while the latter might prefer something a little more residential.

Low maintenance
Neighborhoods with lower maintenence 

Most young buyers look for homes that are low maintenance, says Cardillo, who points out that low-upkeep features such as wood floors (as opposed to carpet) and granite countertops are seen as positives for this generation because they're both attractive and relatively hassle-free.

Cardillo says he sees a generational shift toward a society that's more "disposable," where homeowners prefer to replace rather than repair.

"Most young homebuyers grew up watching their parents spend weekends with their honey-do lists, or they had chores to do on the weekends," he says. "Most young buyers are not going to follow in their (parents') footsteps. They don't want to do that stuff. … They want their weekends to themselves and don't really want to be cleaning gutters or cutting the grass."