IRVINE, Calif.--(BUSINESS WIRE)--While more than three-quarters of millennials feel very confident about how to sell a home, very few have actually done so according to a recent survey by SOLD.com, the first-of-its-kind educational resource and proprietary recommendation engine for homeowners researching and evaluating the many ways to buy and sell a home.
Despite millennials’ high confidence in knowing how to sell a home, they don’t have the home selling experience to support it. Home sellers ages 28 years and younger composed only 2% of the share of all home sellers last year according to the National Association of Realtors 2019 Home Buyers and Sellers Generational Trends Report (April 2019). Accounting for older millennials, 76% of home sellers ages 29-38 were selling homes for the very first time.
This misplaced confidence could be detrimental from a financial perspective given that 59% of consumers between 18-34 years old are planning to sell a home within the next three years. This compares to 35% of people between ages 35-54 and only 15% of consumers over 55 years old who are planning to sell their homes.
“In today’s world, it’s easy to build misplaced confidence due to the vast amount of information available online. While having many resources at our fingertips is certainly a good thing, it’s important to utilize them effectively and to realize which ones are trustworthy and unbiased. This is particularly true for millennials who are selling homes for the very first time,” said Matt Woods, President of SOLD.com. “At SOLD.com, we evaluate consumers’ preferences, objectives, and local market factors to generate a free and unbiased recommendation for how to sell a home. For first-time sellers – which make up the majority of millennials – this offering, along with the guidance we provide along the way via our concierge service, can make all the difference in having a successful home selling experience.”
Millennial Knowledge Gap
The knowledge gap among millennials exists across many facets of home selling. For example, 81% percent of millennials said having a good credit score is important when selling a home. The reality is that a good credit score is only necessary when purchasing a home. Additionally, when asked whether buyers or sellers are typically responsible for repairs to homes discovered while under contract, almost half (42%) of respondents ages 18-34 said that buyers will pick up the tab. The reality is that most repairs prior to the sale are paid for by the seller. This misperception can result in an inaccurate estimation of the costs that millennials will incur when selling a home, exposing them to economic challenges.
Ironically, when asked what they’re most worried about related to a home sale, millennials selected finances (30%), along with getting a home ready to sell (32%). The aspect of finances associated with selling a home that millennials noted as most troubling is tax implications (30%). Interestingly, this concern varied among age groups, with consumers between ages 35-54 citing the coordinating of buying and selling and those over age 55 noting not being able to sell their home at their desired price as the largest financial concern.
Millennials aren’t alone in their lack of knowledge around selling a home. SOLD.com’s survey found that across all age groups, over half of respondents were unfamiliar with any options for selling a home aside from a traditional real estate agent or For Sale By Owner (FSBO). In reality, there are several alternatives that offer varying degrees of cost and service levels, including selling to real estate investment companies (iBuyers), through discount/flat-fee brokers, and online technology or auction platforms.
Appetite for Alternatives
It’s no surprise that millennials are using online resources more actively than any other age groups to gain knowledge around the real estate market. Sixty percent of millennials check their home valuation online at least once a month. On top of that, they’re more confident than any other age groups that these valuation estimates are accurate, with 46% saying so compared with 32% of people ages 35-54, and only 6% of people over 55.
Given their tech-savvy nature, it’s not surprising that the survey indicated that millennials have more of an appetite and aptitude than other age groups to research their options and utilize disruptive methods for selling a home instead of immediately opting for a traditional real estate agent. That said, half of millennials invest less than three hours researching the resources and methods available to sell a home.
“It’s excellent and encouraging to see millennials’ interest in and willingness to explore home selling options beyond traditional methods, yet they’re still not aware of all the resources available to them,” said Woods. “In this age of customization, this demographic has the potential to set an example for other age groups, proving that there are new, diverse and reliable options for selling a home that can satisfy each individual’s objectives, whether that means selling a home quickly or for the highest price. SOLD.com is here to help millennials – and all age groups – realize and achieve this.”
These findings are from a survey conducted in April 2019 by Toluna on behalf of SOLD.com. A sample of 1,000 homeowners from the continental United States and Hawaii were interviewed online, in English.
SOLD.com is the first-of-its-kind free, unbiased, educational resource and comparison engine for consumers researching the best method to buy and sell their homes. The SOLD.com platform aggregates disruptive real estate services and top local brokers in one place to inform and educate users about the many options available to them. SOLD.com then uses its proprietary technology and personal concierge services to analyze objective and subjective factors – including local market characteristics, customer service rankings and personal preferences – to provide users with a free and unbiased recommendation for the most efficient, cost-effective route to buying or selling a home.
For more information, please visit https://www.SOLD.com/.