Millennials are the new perfect market for house flippers. Why? Well, according to what Charles Tassell, chief operating officer at National Real Estate Investors Association, told Realtor.com, millennials want to move into home that require very little work. They don’t want to have to do their own home upgrades, replace toilets and cabinets, or go through the hassle of re-siding a home. They’d prefer homes that are ready for occupancy. Plus, and here’s the big thing, they make up 35 percent of the homebuyer market. Millennials outnumber homebuyers for every other generation.
So, believe it or not, home flippers, your most likely target demographic are millennials. They are literally the largest purchasing group in the entire country right now.
So, here’s a little bit about what millennials want.
What Are Millennials Buying?
When it comes to homes, millennials are settling in the suburbs. For homebuyers under age 36, 57-percent bought homes in the suburbs in 2016. Only 15-percent of this same group chose to live in urban neighborhoods. Still, they do want to be able to walk to amenities, cafes and restaurants. Consequently, to appeal to millennials, look for homes in walkable neighborhoods within the suburbs close to a commercial district.
They also are preferring homes that meet, but do not exceed their space requirements. So, don’t assume a very large home is what they want. They’d prefer an open floor plan. As a house flipper, that might mean knocking down a wall that isn’t structurally important. Millennials are buying three bedroom, two bathroom homes with a minimum of 1000 sq. ft. of living space. Still, remember, this minimum is virtually enough. They are not impressed with more space as long as the space they do have is open.
Millennials also love green building features. So, while they could very easily insulate their own water heaters, if you insulate it for them while flipping a house, it will be more desirable. They also love solar panels. Interestingly though, a few solar panels could be enough to entice millennials. They would love homes powered by solar alone, but would be willing to settle for solar power just as an energy saving accessory. Make sure you get efficient storm windows installed. If you’re replacing the HVAC unit, consider an efficient pellet stove as a backup source of heat for a ductless heat pump HVAC system.
They’ll be impressed with green tech, energy efficient appliances, all LED lighting , access to high speed internet, and ample outlets for plugging in devices.
To learn more about how to sell a home to millennials, check out our earlier blog post.
Millennial Homebuyers Profile
Millennials are those born before the year 2000, but after the year 1980. They have a median household income of $88,200. So, they make a little less than the market average. Generally, homebuyers from this generation will be married couples. The next most common group that will be buying homes will actually be single women.
Are You Looking for a Hard Money Loan to Flip a House Or Buy A Rental Property?
Paces Funding is a hard money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, or the North and South Carolina metropolitan areas. Our application process for hard money loans is easy. Just fill out this very simple online form and you will be contacted shortly. Unlike other lenders, the window between applying and funding is very small. We have funded properties in as a little as one day, but typically funding hard money loans takes about seven to ten days.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.