A new study finds that millennials lack understanding of the total cost of buying a home and the majority hire the first real estate agent they meet.
The study, by Nobul, a digital marketplace that matches homebuyers and sellers with real estate agents, found that 67 per cent of prospective millennial home buyers agree finding the right agent is essential for a successful home purchase. But only one in 10 millennial homeowners considered more than one agent, and 75 per cent hired the first agent they met.
“The study clearly shows that while millennials value home ownership, with many planning to purchase soon, they don’t completely understand the costs,” said Regan McGee, CEO of Nobul, in a statement. “Industry stakeholders need to take more responsibility in creating transparency in real estate transactions, especially as it relates to the costs associated with buying and selling a home.”
The report found:
- When it comes to selecting an agent, 75 per cent of millennial homeowners hired the first agent they met. This stat is put into context when you consider that the average millennial Netflix user browses 10 to 20 titles before making a selection.
- When it comes to awareness of the commission structure of buying and selling real estate, 38 per cent of prospective millennial home buyers know nothing, or very little, about average commission rates.
- When it comes to overall affordability of a home, one-third of prospective millennial home buyers surveyed state housing prices are affordable in the area they plan to live – despite the average bungalow costing $521,250 nationally and an average millennial after-tax household income of $44,093.
- When it comes to appetite in purchasing a home, first-time homebuyers account for 68 per cent of surveyed millennials who plan to buy home in the next two years.