Connecting with young home buyers for better customer service

Archive for Gen Z

Connecting with young home buyers for better customer service

The Federal Government’s mortgage guarantee scheme aims to help first home buyers enter the property market and according to the ABC, a month and a half into the program, 6,500 loans have been or are being processed. 

That leaves another 3,500 places in the scheme this financial year and another 10,000 spots will become available from July.

Under the scheme announced ahead of the May election, the Government is offering loan guarantees for properties with different caps for different cities and regional centres.

Just released data shows the scheme is helping millennials achieve their home ownership aspirations and boosting sales in regional areas.

Quoted in Elite Agent HIA Chief Executive Industry Policy, Kristin Brookfield, says 34% of applicants are aged between 25 and 29, with 76% between 18 and 34 and millennials making up the largest share.

“This represents 3055 first home buyers taking the opportunity to buy their first home sooner,” Ms Brookfield says.

“Where first home buyers are looking to live is also encouraging with a large number of applicants, including millennials, looking to buy outside the major cities of Sydney, Brisbane and Melbourne.”

RESO CEO Kate Chalk says Generations X (millennials) and Z are posing a challenge for the real estate industry because they are demanding to connect, research and purchase through digital devices.

“With the increase of volume of millennial, and younger purchasers, real estate agents are learning the value of online tools that place the property transaction process at their buyers’ fingertips,” Kate says.

“The RESO platform – Real Estate Sales Online – has been designed with feedback from the real estate industry to deliver to these changing consumer expectations and a heightened need for speed and transparency.”

While agents of all ages are embracing online tools millennial agents like Klemich Property Consultant and Personal Sales Assistant to Penny Riggs, Isabela Klemich, know the importance of technology across the property process………..

Isabela Klemich

Q: What is your personal experience with younger buyers and vendors when it comes to technology use and their expectations?

A: Younger buyers and vendors certainly prefer to communicate via email, text and even Facebook Messenger rather the over the phone – very rarely do they pick up the phone and make calls!  I recently listed a property and got as far as collecting the keys a few days before the first open before I realised I didn’t even have the vendor’s number – all our communication had been over Messenger, email or face-to-face   And more and more young buyers use text to communicate and communication can be done at all hours of the day – often at 9pm at night etc.

Q: How dominant do you think mobile technology use is and how will it affect property transactions in the future?

A: Very dominate – most people use their phones to search for property and people find agents and keep up-to-date online or over social media. 

Q: Do you think using technology like RESO.com.au will be how Generation Z expects to buy a home?

A: Most likely, yes – a lot of people just expect us to do things online. I think young people feel much more comfortable when things are done online – they don’t like having to make a call!

Q: What benefits do you see technology bringing to the real estate transaction process?

A: It can save us a lot more time and help us be more productive. Technology also helps us get more business.  But although I believe technology is really beneficial, we are still a people business and sometimes we just need to meet with people and chat! 

Gen Z demand online platforms

Expectations of how we buy and sell property are changing rapidly as a rising generation of Generation Z home buyers steadily moves towards investing in property or buying somewhere to call ‘home’.

Born between 1995 and 2009, Generation Z is the first generation born into a world where technology is omnipresent with the internet, smartphones and social media an indispensable part of life.

According to Sydney-based research firm McCrindle Generation Z are also the largest generation ever, comprising around 20% of Australia’s population and almost 30% of the world’s population.

Currently aged between nine and 23, there are more than two billion Generation Z on the planet, with 4.5 million in Australia.

RESO CEO Kate Chalk says they are the first fully global generation that has always been connected through digital devices and engaged through social media.

“The rise of Generation Z is signalling major changes for real estate agents as this digitally savvy generation demand online tools that place the property transaction process at their fingertips,” Kate says.

“Generation Z’s have little interest in traditional media, like newspapers and TV, but searching and purchasing online is how they roll,” Chalk says.

“The real estate industry has to adapt and be responsive to this emerging generation’s needs by normalising simple online tools that streamline access to every part of the property transaction process and deliver total transparency for all stake holders.

“The RESO platform – Real Estate Sales Online – has been designed with feedback from the real estate industry to deliver to these changing consumer expectations and a heightened need for speed and transparency.”

Earlier this year REISA President, Brett Roenfeldt OAM, announced technology would be the focus of its 2020 centenary review in preparation for the massive shift in service delivery Generations Y and Z  bring to the real estate industry.

Brett Roenfeldt

“The rise and rise of technology, big data, automation and demand for real time solutions for consumers are all influencing our industry and must inform our forward strategy,” Roenfeldt says.

“The move to embrace technology will gain even more momentum in 2020 than it has had in 2019, which is good news for buyers and sellers, because digital platforms like RESO are all about enhanced user and customer experiences.”

Ray White Semaphore Sales Manager, Samantha Hirniak, certainly knows a thing or two about digitally connected consumers and buying property at a young age and uses www.reso.com.au for many of her property sales.

Samantha Hirniak

Samantha was captivated by the real estate industry as a teenager, purchasing her first renovation project at the age of 18 before buying and selling numerous other properties.

Samantha says buyers who are 35 years and under, and foreign buyers, have been grateful for the RESO platform because it enables a much faster and streamlined process to offer and purchase. 

“Mobile technology is more dominant than ever before and buyers want documents and answers yesterday,” Hirniak says.

“A recent Gen Z purchaser from overseas was extremely impressed and grateful we offered RESO and was shocked that in Adelaide all agents do not utilise this technology. 

“Mobile technology coincides with the faced past lifestyle people now lead and transparency, time management and a better buyer experience are basic requirements for this connected consumer generation.”

Agents, like Samantha, who use the RESO platform can upload a property in a matter of minutes and provide buyers 24/7 access to the registration, offer and contract process.

Through automation, increased speed and the seamless online delivery of the property purchase from beginning to end, RESO’s technology enhances relationships with buyers and delivers exceptional outcomes for sellers.