Despite online-only services, millenials sticking with traditional lenders and agents
By Jesse Darland
CTW Features
Bucking accepted wisdom, a recent survey revealed that – when it comes to homeownership, at least – millennials are more traditional than previously thought.
The survey, conduced the online financial wellness community CentSai, interviewed 2,050 Americans between ages 18 and 34.
It’s no surprise that nearly all millennials surveyed (91 percent) use online sites or mobile apps to gather information about homes, neighborhoods and prices.
However, millennials as a whole tend to put a high value on the knowledge a local real estate agent provides. Three quarters of those surveyed (75 percent) said they wanted to work with a real estate agent local to their area instead of using an “online agent.”
“We were surprised to learn that online providers are not yet as big a disruptor in this sector as we first thought, despite purported cost savings,” said Doria Lavagnino, CentSai co-founder and president. “We found that millennials place a high value on the personal touch and knowledge of a local agent. Buying a home for the first time is daunting, and working with a local agent – particularly an agent referred by a parent or friend – could provide peace of mind.”
That preference for local resources extends to lenders as well. More than seven in ten respondents (71 percent) planned to use a local bank or other institution to finance a home purchase.
The millennials surveyed expressed a preference for homeownership, with a slim majority (56 percent) stating they plan to purchase a home within the next two years.
For the 44 percent who said they were not planning to purchase a home, 68 percent stated the primary reason is they can’t afford to do so presently. Ten percent identified student loan debt as their reason not to buy, while 12 percent cited the freedom that comes from renting.
© CTW Features
