With interest rates rising and a vast majority of homeowners already locked into low rates, refinancing is set to drop $400B in 2017 leaving new home purchases to fill in the gaps. So, what motivates homebuyers in 2017? Who is the ‘modern homebuyer’ and how has the millennial mindset affected the way we need to service them? How can you recognize the needs of today’s homebuyers and what can you do about it? This presentation is a research-based glimpse into the minds of today's homebuyers.

1. What homebuyerswant in 2017
and howthe industrycan help
© 2017 ValueInsured and PVI Agency, LLC 1

2. Scenario
With interest rates rising and a vast majority of
homeowners already locked into low rates, refinancing
is set to drop $400B in 2017 leaving new home
purchases to fill in the gaps.
• So, what motivates homebuyers in 2017?
• Who is the ‘modern homebuyer’ and how has the
millennial mindset affected the way we need to
service them?
• How can you recognize the needs of today’s
homebuyers and what can you do about it?
© 2017 ValueInsured and PVI Agency, LLC 2

3. Market challenges
Interest rates have been at historic
low. Now going up.
Since the 2008 housing crisis and subprime
mortgage-triggered recession, unemployment
rate has steadily decreased, all economic
indicators have rebounded, and home prices
have recovered in most parts of the country.
But now, greater uncertainty along with rates
are increasing.
Homeownership rate down 11-
years straight.
According to the latest U.S. Census and NAR
reports, homeownership rate is on an 11-year
consecutive downward trend. First-time
homeowners now make up 32% of all new
home transactions, down from 40% before the
2008 bust, while demographically, the potential
first-time buyer population has increased with
the coming of age of Millennials.
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© 2017 ValueInsured and PVI Agency, LLC

4. The Modern Homebuyer
They are constantly evolving
© 2017 ValueInsured and PVI Agency, LLC 4
Today’s homebuyers have grown up in a period of
uncertainty and technology advances changing how
they look at homebuying.
1. They still have cold feet – doubts about buying,
the market, affordability and an uncertain future
2. They aren’t brand focused – they look for value
and trust and have no brand affinity with agents or lenders
3. Consumption preferences have changed –
they rent, they move, they buy on a phone
4. They have more distrust of the mortgage and finance industries
Knowing these help us refine our messages and those that do so are in an
unique position to help attract this next generation of buyers for the industry.

5. ValueInsured Insights
Modern Homebuyer Survey
© 2017 ValueInsured and PVI Agency, LLC 5
Insights available at valueinsured.com/trends

6. Modern homebuyers are nomadic. 86% of
Millennial homeowners plan to stay in their
current home for less than 7 years
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This exposes many to higher risks of market fluctuations, and
deters others form buying all together.
© 2017 ValueInsured and PVI Agency, LLC

7. Millennials are largest generational cohort in
U.S. history. They want to own a home but
need more confidence to buy
© 2017 ValueInsured and PVI Agency, LLC 7

8. More on generational shifts: Millennials
plan to spend big, while Boomers plan
to downsize
8© 2017 ValueInsured and PVI Agency, LLC

9. Next generation homebuyers are 66% more
likely to buy a multi-generational home
9© 2017 ValueInsured and PVI Agency, LLC

10. Industry innovations e.g. low down payment and
online shopping are changing modern homebuyer
profile, behaviors and expectations
10© 2017 ValueInsured and PVI Agency, LLC

11. After a record housing year, modern
homebuyers fear home prices are overheated
11© 2017 ValueInsured and PVI Agency, LLC

12. Looking ahead for 2017, housing confidence
is holding steady, with some weakness
showing among homeowners
12© 2017 ValueInsured and PVI Agency, LLC

13. Cautious optimism appears to be the
new theme of 2017
13© 2017 ValueInsured and PVI Agency, LLC

14. Highest HHI ≠ highest optimism likely due to
expectations that markets are overheated.
© 2017 ValueInsured and PVI Agency, LLC 14
Highest income Americans seem most concerned that market has peaked. Middle-
income Americans appear more optimistic.

15. As overheated prices cool, more first-time
buyers now feel a new home is within reach
© 2017 ValueInsured and PVI Agency, LLC 15

16. © 2017 ValueInsured and PVI Agency, LLC 16
What canyou do?

17. 1. Become
a trusted
adviser
© 2017 ValueInsured and PVI Agency, LLC 17
• Real-estate is local;
you must be
personal
• Avoid the Race to
bottom
• Shift is to value and
values -
differentiate to
meet expectations
of fairness, flexibility
and control

18. 2. Embrace
the
“millennial –
mindset”
© 2017 ValueInsured and PVI Agency, LLC 18
• Attract buyers who
work on phones,
appreciate design,
simplicity and speed
• Modernize - look
towards lifestyle
imagery and not the
standard clip art
• Speak to their needs
not yours

19. 3. Discuss
“real” costs
to deepen
relationship
© 2017 ValueInsured and PVI Agency, LLC 19
• Know that there will
always be someone
cheaper
• Advise on long-
terms costs not just
the initial outlay
• Relate to monthly
payments vs
broader costs

20. © 2017 ValueInsured and PVI Agency, LLC 20
ThankYou!
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@valueinsured