With half of all buyers under 36 and half of sellers under 41, millennials are making a major impact to the housing market. They’re ending their leases, moving out, and buying homes in larger numbers than ever before. (Moms and Dads everywhere: “Yay!”)
In fact, millennials make up the fastest-growing segment of buyers today and have more spending power than any other generation.
Many millennials are taking advantage of rebounding employment rates and a steep drop in interest rates to make the leap into homeownership. How can mortgage brokers and loan officers attract millennials? Reaching millennials doesn’t have to be complicated. Like all marketing, the key is understanding your audience.
In the past, buyers went to the bank to learn their mortgage options but technology has changed the game. Millennials love tech and, unlike boomers, they’re more likely to shop around on the internet, looking for the best mortgage options. Banks have had a hard time pivoting to these changes, which gives mortgage brokers an advantage. How can you evolve your mortgage business to capture this powerful audience?
If you want to reach millennials, start with a strong internet presence. 99% of millennials used the internet to get information on the home buying market. It’s no longer a word-of-mouth or realtor-referral only world.
- Do you have a functional, well-designed website with the information your prospects are looking for?
- Can users fill out a simple form, directly on your website to learn their mortgage options or schedule a meeting with you quickly?
As the first generation of true digital natives, millennials love smartphones and feel comfortable using them for tasks big and small. A professional website isn’t enough. Your site needs to be mobile-friendly and easy to navigate. Everything on your site needs to work seamlessly, regardless of what device is being used to access it.
Consider that visitors will likely be searching for information from multiple sources. In 2016, 86% of homebuyers ages 18 to 34 shopped around for a mortgage compared to 55% of the 55 and older crowd. Do research and brainstorm ways to make your content stand out from the rest. Millennials love options and take their time shopping around. This creates a longer buying window and opens up the possibility they’ll land on your corner of the internet. However, it means you have to make an effort to be memorable so you’re the one that seals the deal.
With more and more people working remotely, quick digital communication is also important. Can your audience quickly schedule a meeting with you or reach you with a question?
Just the other day, my coworker was making a dental appointment over text. I love that! Personally, I always go with the hairdresser who will take my appointment over Instagram. It’s just easier.
- Respond promptly to contact form submissions, emails, and texts.
- Use email marketing, social media, and live streams to connect and grow your audience.
Digital communication is a great way to share valuable resources and educate prospects on the home-buying process.
You can’t do it all (seriously, why are there so many social media platforms?), but what you can do, do well. Post regularly. Be active. Engage with your audience. Respond quickly to messages and questions, network, and provide your audience with the relevant and useful info they’re looking for. Sharing useful information builds trust and bolsters your brand image. Focus on offering value – not just making a sale.
It’s a visual world. Video content goes a long way with millennials. Short-form videos are taking over every corner of the internet. Educational blogs are a great way to leverage keywords for SEO and gain some traction online while providing a valuable resource. If you plan on running ads, consider targeting your local area as a starting point. There are endless ways to leverage content to make a big impact online.
No one likes feeling as if they’re being manipulated or patronized for a sale. Millennials are quick to catch on to inauthenticity. Don’t be fake. Focus on building trust and establishing a relationship over making a sale. Have an attitude of, “How can I help you?” instead of “What can you do for me?” It may seem a bit counter-intuitive, but in the long run it can build your business with referrals.
While it may be taking millennials longer to buy houses than previous generations, this is their time to shine. Learning how to market to millennials can help boost your business exponentially and make you a better mortgage broker overall. Part of growing your business is learning how to modernize and evolve with the times.
What are some other ways to attract millennials looking for the right mortgage?