A report from the National Association of Realtors has taken a close look at how homebuyers look for their homes and how real estate agents communicate with their clients.

The study found almost half of buyers began the home buying process online. Throughout the entire process, 88 percent used online sources to find information. More than half used an iPhone and more than a quarter found their future home using a mobile app.

A study by Redfin and Survey Monkey also found that 21 percent of people made an offer on a house without seeing it in person. The majority of people also said they were confident that real estate websites would be updated with housing options in a timely manner.

These statistics show that having a website in today's real estate world is important. As the home buying market becomes more populated by millennials, real estate websites and apps are becoming even more relevant.

Building a Good Website

According to Realtor Magazine, there are several key features every good real estate website should have. The most important is a comprehensive IDX search function, which will allow prospective homebuyers to search for properties in the area. Consumers can use the IDX to find listings from the company whose website they are searching, but also from other companies as well.

Offering advanced search options, such as information on school districts or foreclosures, will also be helpful to consumers. Smashing Magazine suggests having this feature located on the left hand side and include a map app, such as Google Maps, to give consumers a better idea of where the home is.

Both Realtor Mag and Smashing Magazine stress the importance of having a clean layout. A website that is cluttered or hard to navigate is one that will be clicked away from. Smashing Magazine suggests using a traditional or classic theme to convey dependability and being well-established.

NAR's report found that the website features people found most helpful were photos, details about the listing, interactive maps, virtual tours and neighborhood information.

Real Estate Agents Are Still Needed

Even though homebuyers have been moving their home searches online, 87 percent of homebuyers still worked with a real estate agent, according to the NAR's report.

"Consumers have the ability to do more home buying research online and be more connected during the home search process than ever before, but research proves they are still seeing the value a Realtor brings to the transaction, from the initial search to well after the closing," NAR President Chris Polychron said in a press release.

The report showed people still have a need for real estate agents. More than half of respondents reported that finding the right property was the hardest part of home buying. The two hardest parts for millennials were paperwork and understanding the home buying process. With the help of a real estate agent, these aspects of home buying are made easier.

According to Forbes, working with a real estate agent makes the buying or selling process much easier. For instance, real estate agents will be the ones to negotiate prices and communicate with other agents and sellers. These parts can be tricky for someone who isn't familiar with the process or who doesn't have the same access real estate agents do. According to the Redfin survey, 62 percent of respondents said they felt their agent had done their best to get a good deal on their home.

Some people believe that, since real estate agents get a commission on a house that is bought or sold, avoiding working with one will save them money. However, chances are, without the real estate agent, a buyer won't price the house correctly and end up overpaying. The seller might save some money by not working with an agent, but the buyer is usually better off working with a professional.

Communication Is Key

Though homebuyers still need real estate agents when shopping for a new home, it's important that agents are accommodating to their clients. In the changing media landscape of today, people have new ways to communicate with each other. This is as true for real estate agents and their clients as it is for anyone else.

The NAR's report found that more than 90 percent of real estate agents use their computers and smartphones daily. Most agents communicate with their clients through emails and text messages. Two-thirds of agents use social media for networking and relationship building. Being available to clients in the way they prefer is important to building trust and a good relationship.

"Realtors constantly strive to find ways to make the home buying and selling process easier for and more accessible to their clients," Polychron explained in a press release. "There is nothing more important than helping people find and land their dream home, and since technology helps Realtors do that, it will continue to be a priority."

In today's technology-driven world, it's important to have an online presence. Real Estate Agents should have websites and social media accounts to connect with current, past and potential clients. However, managing these accounts can be tricky sometimes.

1. Stay Calm

When someone makes a negative comment on your Facebook page, it can be tempting to refute it right away or delete the comment. But this isn't always the best option. In fact, getting defensive and attacking the comment – or the commenter – are some of the worst things you can do.1

2. Say You're Sorry

Instead, begin by saying you're sorry for whatever grievance the client has, even if you have a perfectly reasonable explanation. Even if you didn't call a client back because of a family emergency, it can still come across like you're making excuses. Also, thank them for bringing the problem to your attention.

3. Make it Personal

Agents should also make each response personal.2 Don't use a standard go-to reply for each negative comment. This will make you seem insincere, or like you don't care about the feelings of your clients.

Dealing with negative feedback can be stressful. It's not always clear what the right answer is. But the important thing to do is remember to be respectful to your clients' feelings and always be prompt in responding to criticism.

1 Zillow
2 Homes.com

For the third year in a row, millennials comprise the highest share of homebuyers in the U.S.1 As millennials continue to enter young adulthood and flood the housing market, New American Funding is dedicated to making sure its Loan Officers know exactly how they can best appeal to and work with this very unique generation.

New American Funding is here to serve the needs of its borrowers, and right now, many of those borrowers are millennials. We understand that when it comes to the mortgage loan process, millennials have varying preferences in how they select a lender as well as how they want to communicate with that lender. It is vital that Loan Officers shift their marketing and customer service strategies when working with this tech-savvy, inquisitive generation.

There are many steps Loan Officers can take to make millennials excited about working with them:

1. Educate, Educate, Educate

Millennials are the most educated generation in history. As a whole, they don't like jumping into things they don't understand, especially when they have grown up in a world where any information they seek is just a click away. Millennial homebuyers want to be informed, and Loan Officers who take the time to educate potential borrowers on the mortgage loan process are going to come out on top.

The best way to educate millennials is through online content. Millennials live for their screens, and whenever they have a question about something, they are going to Google it. These homebuyers are likely to become loyal to the lending brands they find online – particularly those that provide helpful guidance through articles, videos and how-tos before they have even become customers. Increase your focus on Search Engine Optimization and other digital marketing techniques so when millennials Google questions about mortgages, your page is the first thing they find.

Once potential customers have been turned into actual customers, make sure to continuously update them on every aspect of the process and walk them through anything they do not understand. Keep them in the know, and they will keep wanting to work with you.

2. Build a Social Media Presence

If you aren't on social media, you're already falling behind. Places like Instagram, Facebook, Twitter, YouTube and Pinterest are where you'll find millennials, who are out there searching for brands that will engage them. The more channels you join, the more customers you will reach. Just make sure you research the best way to leverage each social channel, as each one requires distinct marketing and engagement tactics.

Engagement is the key word here. Social media is not the place to obsessively advertise your products and services. Millennials are turned off by direct advertisements and become more loyal to brands that make them feel like they are part of a conversation. Social media is a place to offer more educational content and spark discussions about various industry-related topics. Loan Officers who establish themselves as engaging thought leaders on social media will appear trustworthy and like they truly care about these homebuyers' needs, not only about getting their business. This marketing technique will attract more millennial customers.

Because millennials came of age during the economic recession and witnessed their parents' immense financial struggles, many are wary of the home buying process and have difficulty trusting Loan Officers.2 These kinds of engagement tactics will encourage millennials to trust you. Transparency and warmth are keys. Millennials want to feel like they are interacting with human beings rather than faceless businesses.

"Loan Officers should give borrowers the option to electronically sign documents."

3. Invest in New Technology

Efficiency is a millennial buzzword. If they can't complete easy loan application tasks online, they may decide to find a lender who will allow them to do so. The more steps millennials can complete online, the happier they will be. Whenever possible, Loan Officers should give borrowers the option to electronically sign documents. Even more, they should be able to access a web portal that allows them to fill out their entire application online. If you want to improve your online services even more, offer online tools that help millennials calculate various costs based on their wants and needs.3

Millennials grew up with the Internet, so in their eyes these kinds of services are not extras. They are simply an expectation.

4. Text Them

Texting may feel unprofessional to someone in an older generation, but it is millennials' preferred method of communication. They will appreciate Loan Officers sending them a quick text when the information they need to provide is not substantial enough to necessitate a phone call. To millennials, texting is actually good customer service.

Millennials are a force in real estate, and at New American Funding, we are prepared to meet their needs.

Sources

1 National Association of Realtors 2016 Home Buyer and Seller Generational Trends Report
2 DataTree
3 Accenture

Buying a home is often considered a milestone in life as well as in a relationship. According to the National Association of Realtors, 67 percent of homebuyers were married couples, up from 58 percent five years ago. However, many couples are reversing this order, opting to join together in homeownership before matrimony.

Unmarried Homeowners

The NAR's 2015 Profile of Home Buyers and Sellers found 7 percent of homebuyers were unmarried couples¹. While this sounds like a small fraction of homebuyers, this is a growing trend among younger buyers. The median age for this demographic was 33 years old, while the median age for married couples was 36 and those for single females and males even higher, at 50 and 45, respectively.

According to the U.S. Census Bureau, the number of people living with a partner, as opposed to living alone, with family, with a spouse or another arrangement, has grown steadily since 1996². In 2010, more than 16,000 homeowners lived with a partner, about double the amount of just a decade before.

There are plenty of reasons millennials are opting to buy a home before tying the knot. More than half of unmarried homebuying couples were first-time homebuyers and the majority of them did so because they wanted to own their own property, as opposed to wanting a bigger space or because of a change in their family situation. However, these aren't the only reasons to buy a home together.

Financial Reasons

GOBankingRates reported that increasing costs of both weddings and rentals could be contributing to the trend³. As weddings become more expensive, millennials hoping to save money for future events choose to hold off. Meanwhile, rent is becoming more expensive and, on a long-term time frame, owning a home makes more financial sense. Rather than paying a monthly bill only to be granted one month's worth of housing, a monthly mortgage payment means a couple is growing their home equity. Once the mortgage is paid off, they have something to show for all those payments.

Forbes contributor Lucy Mueller explained that buying a home as a financial decision has also led millennial homeowners to view the purchase differently⁴. They aren't looking to buy a forever family home; a house is an investment. They plan to sell it after a few years. Nela Richardson, Redfin's chief economist, told Mueller that this mindset affects the type of homes millennials are drawn to.

"We know that a lot of millennials want to live in the city, they want to live close to work, they want to live in walkable neighborhoods and guess what? These neighborhoods are great investments," Richardson explained. "The millennials I'm profiling are typically not the ones buying large McMansions in the suburbs that will take longer to pay. Many of them are buying condos in the center of cities."

According to the NAR, more than half of these homebuyers listed a convenient commute to work as a main factor in the homes they chose. As more unmarried millennials begin to become homeowners, real estate agents will want to seek out properties that will appeal to them: affordable, single-family homes and condos in walkable neighborhoods.

Source:

¹ National Association of Realtors
² U.S. Census Bureau
³ GOBankingRates
⁴ Forbes 

As March comes to a close and the final remnants of winter melt away, it's time for homebuyers to start thinking about jumping into the exciting spring housing market. Historically, spring is one of the most popular times to buy, and it's looking like this year will be no exception. In fact, Realtor.com predicted this spring will be the busiest housing market since 2006.¹

Buyers will be coming out in droves this spring for a reason. It's a great time to buy. If you have been planning to purchase a home sometime within the next few years, it could be in your best financial interest to do it now.

Here's why:

1. Mortgage Rates are Still Low

With the December announcement that the Federal Reserve would begin to raise interest rates, many Americans feared that mortgage rates would begin to rise in 2016. Instead, the country has been shocked to see mortgage rates drop week after week to reach historic lows.

At the end of February, Realtor.com's Chief Economist Jonathon Smoke told the National Association of Realtors that based on the 30-year fixed-rate mortgage rate that week, buyers had about 5 percent more buying power than they did at the end of 2015.²

Keeping Current Matters, a real estate analytics company, discussed how The Mortgage Bankers Association, Freddie Mac and NAR have all predicted that mortgage rates will be higher by spring 2017.³

Purchasing a home now could lock you in to a lower mortgage rate. The longer you wait, the higher your rate may be.

2. Home Prices Will Continue to Appreciate

NAR reported that due to the small amount of inventory currently available, home prices are rising and are projected to keep on going up.

KCM discussed data from CoreLogic, who predicted that prices will appreciate 5.5 percent over the next 12 months. Using that data, KCM calculated how much a homebuyer could save by purchasing a home now versus next year when both prices and interest rates will be up:

A home today costing $250,000 at a 3.62 percent interest rate would probably cost $263, 750 at a 4.6 percent interest rate by the first quarter of 2017 (the interest rate is based on predictions by Freddie Mac). Purchasing the home now would save the buyer about $212 per month, which equates to an incredible $76,565 in savings over the 30-year life of the loan.

3. It is Still Cheaper to Buy than Rent

In November 2015, HousingWire reported that 88 percent of property managers raised their rent prices in the last year.4 Sixty-eight percent of these property managers said they would probably raise it again during 2016. Renting is becoming increasingly less affordable compared to owning.

In fact, KCM reported that in the current market, you need about 30 percent of your income to afford the median rent, whereas you only need about 15 percent of your income to afford the median home. There is no reason to help pay off your landlord's mortgage when that check could be going toward gaining equity in your own property.

You're probably thinking, that monthly payment may be cheaper, but what if I don't have enough money to cover the down payment? Well, you may be more prepared to cover one than you think. Remember, it is possible to find a loan that allows you to make only a 3 percent down payment, and if that is the case you could have enough to buy a home right now.

But Isn't it a Seller's Market?

It is true that demand is high and supply is low, but that doesn't mean you should avoid the market. What it means is you need to be extra diligent when shopping for a home. Make sure to hire a fantastic Real Estate Agent who understands the competition in your local market, knows how to negotiate and will really fight for you.

Having a lender's mortgage pre-approval letter to show sellers is a powerful tool. You won't waste time shopping for homes out of your budget, sellers will take your offer seriously, and you will greatly improve the likelihood of winning the bid for your new home.

Other options include getting a pre-inspection. Doing so could make you feel comfortable removing the home inspection contingency from your offer, a very appealing move from a seller's perspective. The Post also suggested expressing flexibility based on the seller's needs. If the seller wants to move quickly, be willing to move in right away, and if the seller needs more time, show that you can wait.

Research shows that homeowners are happier and healthier than renters. Why wait? Now is always the right time to invest in your happiness.

Sources

¹ Realtor.com
² The National Association of Realtors
³ Keeping Current Matters
⁴ HousingWire