When it comes to real estate, there are distinct homeownership trends that define each generation.
READ: Buying or selling? Why you should be on your estate agent’s hotlist
A report published by RE/MAX LLC shares some interesting insights into how each generation approaches homeownership.
Although these stats are not South African based, Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa, explains that there is still value to be found in this study. “Certain trends that start in the USA tend to catch on in South Africa – if not immediately, then possibly in the years to come. After reading this study, I would venture to say that the results are not dissimilar to the trends that we are noticing locally too,” he explains.
According to the report, 43% of first-time buyers in the USA reported a lack of funds as a current barrier to homeownership. But it is not only first-time buyers who are feeling the pinch. The research study also revealed that 80% of recent American homebuyers reported compromising on their priorities – whether in the form of cutting down on everyday living costs or making financial trade-offs around transportation.
“Affordability is also a known issue in South Africa – especially now that interest rates have dramatically increased in such a short space of time. Compromising on search criteria is also something we have noticed, especially for those who are semigrating, as property prices differ greatly between provinces which means that buyers might not be able to afford a home of the same size when moving across the country,” Goslett notes.
READ: Tips for selling in a buyer’s market
For first-time and younger buyers in particular, the research report writes that many within the USA are expanding their definition of what constitutes ‘good enough’. People are looking for real estate agents who can help them sort the must-haves from the nice-to-haves and spot value in options they hadn’t previously considered.
40% of Americans also say that terminology/language is a key barrier to homeownership – that’s up from 17% in 2020. Hit the hardest by this is the younger generation, with only 28% of Gen Z in the U.S. able to accurately define key terms such as ‘mortgage rate’.
Goslett confirms that the South African market is not dissimilar in this regard. “There is a massive knowledge gap among most buyers – and this is across the age groups. That’s why a real estate agent is so important. A good real estate professional will be able to guide you through every step of the process and help you better understand the various terminology and processes that form part of the property transaction,” he explains.
Another interesting trend that the report highlights is the emotional nature of the whole house hunting experience. The report states that ‘[f]rom navigating financial hurdles to celebrating milestone moments, homebuying is a deeply personal and emotional process. In fact, at least half of Americans report crying at least once during the experience, with this number rising to 65% amongst Gen Z buyers.’
Other interesting trends that the report reveals include:
- Owing to affordability, Gen Z buyers are more than twice as likely to buy with friends than older generations.
- 91% of Gen Z-ers say having a “green home” is important to them, compared to 85% of Gen Y, 73% of Gen X and 60% of boomers and seniors
- Gen Z buyers are more interested in smart features (78%), new builds (77%), and sustainable materials (81%) than older cohorts
- More than half of millennials and Gen Z-ers would move to the suburbs and rural areas, compared to just 45% of Gen X-ers and a third of boomers.
- 65% of Gen Z-ers surveyed said they require their home to have a dedicated workspace, compared with 25% of U.S. adults overall.
“Across all the generations, homeownership is viewed as a valuable milestone to reach within one’s lifetime. While each generation will follow and form their own set of unique trends, all generations can benefit from working closely with a reputable real estate professional who is able to provide valuable and expert guidance and support throughout the homeownership journey,” he says.
READ: Sellers here’s why a good real estate agent is worth their weight in gold
According to the Seeff Property Group, agents do not only sell or rent property on behalf of their clients, but also have their ear to the ground in terms of what current property values are, how much properties might sell for, and what is happening in the property market.
With so many newcomers to the market, often making lofty promises of high prices and quick sales, it is easy for sellers to get caught up in the hype. A property which simply sits on the market with no or low offers can be very frustrating for buyers.
The role of a good agent in getting your property sold as fast as possible, and for the best possible price cannot be overstated, says Samuel Seeff, chairman of Seeff. A bad agent could leave you with a lengthy and frustrating sale process.
Regardless of when you are selling, but especially in the current market, it is important to ensure you choose the right agent for your property and market. If you are not aware of who the best agents in your area are, ask around for recommendations from neighbours or friends.
Always meet the agents in person before appointing them:
This will give you a chance to ask questions and assess the agents. Check how long they have operated in the area. Each area is different and local expertise is a vital point of advantage for any seller.
Look for a successful sales track record:
Ask for a list of their recent sales in the area, how long it took to sell, and the prices achieved. A strong sales record is an important indicator of the likelihood of success and that the agent could find the right buyer for the property.
A strong brand and network is another advantage:
An established brand will have a strong online presence for maximum exposure of your property backed by the latest technology and marketing and sales methodologies. They will use best practice to market and sell your property.
Look for someone who will assist every step of the way:
Selling a property is a complex process with many legalities to be taken care of. A good agent will explain the process and guide the seller to ensure they have all the necessary documents and maintenance done for an efficient selling process.
Choosing the right agent to sell your home cannot be over-emphasised, especially if you are selling right now as you will not want to waste time, says Seeff. Choose the right agent and ensure you follow their advice.
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