Millennials Are the Toughest Customers
July 26, 2019
Young adults can be among the most difficult clients to serve, according to a survey from Redfin based on responses of 500 U.S. real estate agents nationwide. But baby boomers—those who are 55-plus—weren’t far behind.
The survey asked real estate pros which customers were the easiest to serve. More than half—52%—of real estate pros said Generation X, those between ages 39 to 54, were the easiest. On the other hand, baby boomers and millennials trailed at 25% and 23%, respectively.
“Millennials are accustomed to ordering and canceling ride-shares and meal delivery on their phones, and thus don’t feel the same sense of personal obligation when working with a buyer’s agent who, by and large, only gets paid when a sale is made, after months of service,” Glenn Kelman, Redfin’s CEO, notes in the study. “The other problem of course with younger customers, many of whom have student debt, is their struggle to afford their first home.”
Regardless, real estate pros can hardly ignore millennials as customers. They’re the largest buying force in the housing market right now. Millennials represented 42% of all new-home loans, higher than both the baby boomers and Generation X, according to a study earlier this year from realtor.com®.
“We need to find ways to adapt our service to the on-demand world we now live in by organizing agents into teams, and to develop a consultative approach to the affordability challenges that are preeminent for so many home buyers, by training agents on all the ways a home can be financed,” Kelman notes in the survey.
Updated: August 23, 2019