Reviewing the rate issues at hand, job losses, and more homes on the market with fewer buyers, one of the most basic questions that you should be asking is.... "Who's buying homes now?" And we can take the next step to a larger question at hand. "Who will be driving the residential real estate market?" And "Who is my business."
There are a few key emerging markets transpiring. The baby boomers & echo boomers, single women, and the Hispanic sector. Basically trying to understand these markets by figuring out how they influence the market and where to find them.
We need to educate ourselves by training each other or your organization about the specific desires and concerns of these three critical groups. By doing this, you will be better poised to successfully sell to these customers.
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A. Baby boomers
This traditional economic powerhouse behind the U.S. housing industry trends has for a long time been that generation born between 1946 and 1964. We call this group the baby boomers.
Many investors believe as this group turns into their 60's that many of them will move their investments from the stock market into real estate. And this is good because this group seems to be more responsible which has propelled record numbers in the second home/vaction home sector.
According to the National Association of Realtors (NAR), in 1980, only about 150,000 families owner second homes. Now second homes account for more than one-third of all homes purchased.
I had the chance to talk to Colleen Kulikowski this past Sunday and she mentioned that we would be a good connection because many of her clients buy 2nd homes in Florida. Especially for the fact that she lives in Marco Island, Florida. And she went on to say that many of these refinance their homes in NJ to buy in Florida and that they do fall into the baby boomer group.
Marketing the savvy baby boomer
Keep in mind that baby boomers grew up in the turbulent, idealistic '60s and this generation is characterized by values. This group is far more active, health conscious, and are redefining retirement.
Remember that baby boomers are sophisticated shoppers who have historically been brand loyal. At times, think American or for some us, think of your parents and their friends. You can also compare them to the younger generation which for the most part, proves these examples.
To effectively reach this group, your marketing and customer service should demostrate both respect and good manners. These baby boomers respond to soft selling techniques that emphasize them and their needs and make them feel like winners. Don't play the gimmicks and provide solid, concrete information about your product and services. In regards to loans or real estate from this group, if they have a positive experience, they'll probably tell their pees and generate additional referrals. Take the time to earn their trust. This just happened to me today. I refinanced an older couple in Georgia and it was just the way I treated them and serviced their needs. But at the end, he sent me a letter thanking me for all of my help and always being available. And that they don't forget things like this and would be honored to send me their friends, family, and people from their church. This is a great feeling when you get a letter like this. And I think it helped that I had the title clerk go to their house around 7 pm.
And here is a startling fact to think about. Over the next decade, baby boomers stand to inherit even more money, around $41 trillion. You could then concentrate your messaging efforts on why it's still a good idea to have a second home. Emphasize the tax savings and underscore that they'll remain diversified in their assets.
- B. Gen Xers & Echo boomers
The Gen Xers are born from 1964 to 1981 and then you the Echo boomers which were born from 1982 to 1995. Echo boomers are also referred to as "Generation Y".
Looking ahead, 37 percent of the Gen Xers and 27 percent of the echo boomers plan on buying new homes. And these homes will be bigger and better than what we see now. These two groups are unlike their parents because they are more risk takers and have a multitude of affordable mortgage options to choose from, as well as historically low rates. And with parental help in regards to their down payments and closing costs, this group has fewer barriers to securing mortgages. I have seen this off and on since I have been in the mortgage industry since 1992.
These two groups have more of an attitude of what I can have and are characterized by the fast-paced schedules and a team attitude. Effective marketing to these groups would require techno-savvy techniques and vehicles to attract these 2 specific groups. 42 percent of the buyers who use the internet to search for a house are 34 or younger. Making the mortgage process simple and efficient, will hook these buyers who expect instant gratification and quick results.
Conclusion/Summary:
Selling to these groups would require that you focus your services and products to meet the unique needs of each group. Take time to review your marketing and communication strategies to ensure that the tone and values that you convey reflect the core dynamics of each generation. Whether your customer is entering the prime of his life or just getting started out of college, the importance of you delivering the right message would be an effective format and likely enhance your business.
Top Trendsetters series for your market areas:
- FHA Loans - USDA Loans - Conventional Loans - VA Loans - Mortgages - Experience & Knowledge at its BEST !!!
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For more information on FHA loans, please go to this link. The FHA Expert
For more information about the 2008-2009 Tax Credit for First Time Homebuyers : 2008 Tax Credit
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags !!!!!
Copyright © 2006 by Jeff Belonger
Funny I attended a seminar yesterday...part of the content defined the differences in baby boomers and genxers. I found it amusing. Being a baby boomer myself I like the idea that we plan to live forever. The x'ers need lots of information. Don't try to explain it to them, just give them the info and let them "find" the answers themselves.
The x'ers are the products of split homes, they are the latch-key kids who were raised on TV. They are used to fending for themselves and like it that way. Don't talk down to them (or anyone else for that matter.) Just deliver the goods!
Cheers!
kk
Kristal...... I saw you at that seminar and decided to blog about it before you did..... ;o) <people, teasing>
Seriously, thanks for adding to this post with that information.
Damion...... aahhh, you can do better than that. lol Thanks for the nice compliment. I wanted to write more, but I think this covers most of it. I didn't want to make it to long. Thanks again.
Good morning. On another forum (a listserv) it was pointed out that young teens have gotten into Virtual Worlds, not like this one, but complete worlds where you change your name, buy property, shop, etc. There are two of them that are huge among 15 year olds right now, one being www.secondlife.com. I checked out both of them. It's a tad surreal but it's what they are doing! In fact one of the other posters on this list serv provided info on an adult lawyer (not a virutal one) who was suing a virtual world for 10,000 which he LOST in this community. And that would be real money not virtual money. So lots to think about in terms of future generations.
My question is this. If the next generation is Generation Y, what are they going to do when they run out of letters in the alphabet???
Maureen...... yes, it can be very obvious...for the most part. lol I am just laughing..... I can think of examples though where I have been with a certain age group, but there would be a couple two decades older there..... but they fit right in. I guess some of us never grow up. ;o)
Carole..... LOL We would go back to doubling up the alphabet. XX, YY.... it doesn't sound right though. Generation YY? LOL
In regards to the virtual sites. I saw this on TV once. Extremely interesting. Talk about reaching out to a much younger generation. I think if I am correct, they can buy a house and build a family.... have a job? I didn't click on your link yet, something I will try on my 8th day of this week. LOL
But thanks for sharing that.
Jeff! Great info there! (Now onto my non-generic comment...)
What you have written has a lot of merit. Thank you! This whole "generation" thing has been on my mind a lot lately- (OK, time for shameless plug...) I just wrote a post about Generation X Consumerism, specifically- hopefully to give more insight to a part of this, and add to the collective generation-knowledge base of AR.
The Secret Life of a Generation X Consumer - My Story.
Great info, Jeff. Is it a surprise that Ameriprise Financial chose Dennis Hopper as their spokesman? He personifies that generation to a T. (That is a compliment as I like Dennis Hopper).
Who will our (X) spokesman be? Deon Sanders? Leonardo DiCaprio? Matt Damon? Whitney Houston? Salma Hayek? Allen Iverson?
And who will the Myspace generation's be? Paris Hilton? Britney Spears? Matt Leinart?
who is matt leinart? As for Brian's comment, I feel really lucky cause we have so many who fit the model! Dennis is good...I'm older so Bob Dylan (Bob would HATE THIS) - Cal Ripken - ok time to put on some music. Brian, I would add Al Pacino too (for LOTS of reasons) :-)
Jeff: 8 Days a Week....Beatles song...before your time!
I have identified our target market for the near future and I'm not talking.
I'm a boomer child of the 60's. Interesting about the echo boomers I haven't sold them yet but I have several of them as clients because their parents did more than help with the downpayment they bought them the apartment. ($700,000 apartments) My parents would not even buy me a car :-)
I just sold a condo to the parents of a 24 year old harvard law school graduate his parents want him to buy the apartment from them in a few years when he's making big money
very nice post. it's always a good reminder of who are our potential customers are.
cheers,
cindy
i stage & redeisgn to sell, live and work in san francisco bay area!
cindy@staged4more.com
www.staged4more.com
http://stagingtipsandmore.blog.com/
Jeff, the bulk of my loans this year Jeff definitely fall in the Gen Xers age group. I have found that they decide a lot quicker to buy then my generation. We won't say what that generation is...LOL.
Ginger, I once owned a 1964 Ford Custom 500...does that count?
Wow, its amazing to me that people have all this time to put me in a box, label me, and tell me what I'm all about. Wait a minute...most of this stuff is true!
Thanks, Jeff, for the post. Interesting...very interesting!
Lucky
Jeff
and Mariana as well:(Recent related post)
Some additional remarks based on my experience. I work with a few Realtors that derive their business via the internet. One in particular has given me a keener insight to these follow-on generations. They tend to start shopping and researching their purchase well in advance of their intent to complete the purchase transaction. They are more methodical and technologically savvy. In responding to their inquiries your best opportunity to earn their "eventual" business is provide them with informarion/listings and not press them for feedback. Slow as you go on getting facts and data. If you press, odds are you will lose them very quickly. Let them govern the pace of business.
Jeff,
Realized this trend a few months ago,decided to create www.babyboomersinflorida.com,
Which is now ranked #3 in Google for those seeking information on Real Estate in Florida.
Great post!
Mariana....... who said that you could list your blog in the comment section?>??? <TEASING> hey, great minds do think alike. I'll take a look at it over the weekend. thanks
Brian...... that's an interesting thought. SOme big names there and it can be scary to see who some people look up to and follow in life.
Carole....... Matt Leinhart was the QB for USC in college, drafted in this years Pro Football draft and now starts for the Arizona Cardinals.
Eight Days a Week..... well, not to much before my time.... lol
Christine........ thanks for stopping by. Yes, it is important to identify are markets.
Lenn....... okay? you lost me. Is what you are saying is that you aren't sharing what you know? ;o(
Mitchell....... interesting. Robert Ashby did a blog on this, parents buying kids houses to live in. Here is Robert's blog. Student Rentals - Worth a Closer Look!
Cindy........ thanks for the nice compliment. How is the staging market in San Fran.?
Netta......... that's a good feeling when your clients take you on as part of the family. I had one client many years ago try and fix me up with her co-worker.... lol
George........ which generation is that? lol Did I mention that generation? lol
Ginger....... hey misfit..... lol That is funny and somewhat true.
Lucky....... thanks for the compliment. So, 1964 ford. Still have it? lol
Ron.......... thanks for the input. And I have found the same out when working with people from the internet. thanks
Caron.......... I didn't even think about searching on here when I wrote this. I usually read many of these blogs or at least the titles. I'll take a look at it, thanks.
Scott......... that's cool that it's ranked 3rd... I'll take a look at it and thanks for the kind words.
Tony........ I didn't click on his link yet... did that even show up?
Chris........... yes, so many groups. Do you target one? Target all? Cater to a few...? How do you customize your materials to these groups? Thanks for stopping by.
Mariana......... good point about the waiting game thing. Just keeping in front of them. Maybe a drip campaign to this group?
Jeff~ I look forward to hearing/reading what you have to say! - and the comments are also quite entertaining! Also, drip-campaigns are a great idea- just not high pressure, "You're-Stupid-If-You-Dont Respond-Now" kind of ones. The whole "Act NOW!" concept isn't very effective. Quality information is a MUCH better way to snag an X'er (I talk from experience- both from BEING and X'er and marketing to X'ers.)
p.s. I HAD to make a link- otherwise my comment would've taken 6 years to read, and then we would have to deal with a whole new generation. (wink.. wink..)
p.p.s. I also addressed Echo Boomers in one of my comments- (near the bottom) ...
THis "generation" thing seems to be a Hot Topic here on AR as of late- no not the Mall store...
Mariana: thanks for the tips. Now I know why I do well with genx's because I hate calling to follow up I just drip listings and they call me when they're ready.
Scott : Babyboomersinflorida.com is brilliant. That is a multi billion dollar market.
Mariana...... thanks for your kind words.... drip campaigns are good for internet leads.... because of how they shop. But this is just my opinion. There have been a few studies that you don't make a connection with many of these people from the internet untl the 7 to 10th e-mail that is received. Now.. this is not all the time... but I have experienced it myself.
George..... how old do you think I am not...??? lol
Rob...... thanks for the compliment and comment.
Bryant..... you and I are some what the same and think the same. I hate sales also. My best compliment that I have received from clients in the past, when I asked why they chose me, is because I don't come across as a sales person. That means a lot to me, because I try to keep it real and to be myself. Thanks for your input and honesty.
George..... well, we will just keep it at that. ;o) thanks for your input.
Mariana....... thanks for the follow up in regards to these stats.