How Real Estate Agents are targeting and selling to different generations of homebuyers

Before we dive into what we think is the right approach when dealing with different generations as an Agent, we’d like to give a word of caution. Be careful not to associate all people with a blanket “generational” bias based on their age. Rather, be aware of the biggest differences, but be tuned in to your prospects individual preferences. We can all agree that many Millennials and Gen X’ers can’t wait to get their hands on the latest gadgetry – but many are also a bit overwhelmed and burned out by yet anothet technology to fiddle with, learn, insure, and one day troubleshoot. Their older counterparts, on the other hand, may prefer something more tangible. And they also enjoy and appreciate the convenience of new technology after a lifetime of more tedious methods. With this article, we don’t want to imply that people under 40 are antisocial and Baby Boomers are luddites. Eventually, it all comes down to building relationships with all generations of homebuyers.

When someone curls up with something printed, he or she expects a direct benefit, whether it’s entertainment, information, or a combination of the two. When a couple begins looking for a home, no matter the generation, they tend to go online. But when someone begins looking for an Agent to represent them, that’s a whole new story. Relevance, of course, is relative. If you know who your clients are, you know what they need and how best to connect with them.

A study by the National Association of Realtors®, “Home Buyer and Seller Generational Trends,” offers a glimpse into what motivates homebuyers of a certain age.

Millennials

Millennials – also known as Gen Y or Gen Next – were born between 1980 and 1995. Feeling secure enough to own their own homes, the 33-and-under crowd comprises the largest share of first-time homebuyers (at 76 percent).

With a median household income of $73,600, their decisions are affected by such factors as commute time and expense, local amenities and housing affordability. Millennials tend to buy older and previously owned houses, and are willing to make certain sacrifices for the sake of price and overall value.

This age group uses the internet and mobile devices more frequently than others (followed by Gen X’ers) to research the process of home buying. They often find online the home they eventually buy.

When millennials settle upon a real estate agent, the referrals usually come from friends, neighbors and relatives. What matters most to them is an agent who is honest and trustworthy.

Generation X

Gen X’ers – those born between 1965 and 1979 – also consider homeownership important, though they are more often motivated to buy a house because of job relocation or a growing family.

While the median family income for this age group is about 20% higher than their younger counterparts at $98,200, they probably are still paying off student loans, credit card debt and car notes; so are also willing to make personal sacrifices to get the home they want. They definitely want good schools, parks and local activities, as well as a lawn a garage.

They do much of their research online, but count on a real estate agent who will help them find the best possible deal to meet their needs as a homebuyer.

Baby Boomers

There are younger Boomers (born 1955-64) and older Boomers (born 1946-54). Together they comprise 30 percent of homebuyers, with median household incomes of $95,400 and $81,100, respectively. Keep in mind that older Boomers may be widows and widowers, and their income is likely from securities, annuities, social security, and pensions. Older (and even younger) Boomers have substantially more wealth then the debt-loaded Gen X (and up-and-coming Gen Y). Remember, income is just what’s earned in a year, and does not represent home buying purchasing power. This group is also highly unlikely to be a first-time homebuyer, and the odds are good that they have quite a bit of equity in the home they are selling.

Boomers generally plan to remain in their home for 20 years, and are less willing to compromise than Millennials and Gen X’ers. Primary concerns include proximity to friends, family, shopping and health facilities.

Older Boomers are looking toward retirement and want a smaller home. And they want ranches. You know this, you probably work with many of them, all looking for the same easy-peasy-no-more-stairs-please lifestyle. For many, they are long past the honeymoon phase of home ownership. The kids are gone, and they’re sick of maintaining, cleaning, mowing, and paying to heat and cool empty rooms.

Some young Boomers might need a larger house, as are more likely than any other age group to have a multi-generational household and share their home with their parents and children over 18.

Boomers may begin their home search online, but they ultimately count on a real estate agent with a solid reputation and extensive knowledge of their neighborhood. They’ve simply been burned too many times – not just with home buying, but with all they’re life experiences – and they know that something as important as purchasing a home should be handled with care. This group is more likely to play 20 questions with a new Agent than a hopefully naive first-time home buying Millennial, so be prepared to talk about your experience in detail when going to meet a potential new Boomer client.

Days are long and attention spans are short; time and money are synonymous to a lot of people. If your community is like most – multi-generational – then your marketing strategy and selling approach should include everyone. This means email, social media, seminars, direct mail, and maybe some good old fashioned door knocking. It also means marketing with content that the community cares about, that will “expertise” you, not just testimonial Facebook posts and Just Sold postcards. Once a prospect is interested, it means meeting with them in person, and communicating with them according to the channels they best respond to. For younger folks, email and texting home matches makes sense. Even sharing them through Facebook. For older clients, email is probably sufficient, and a printed and mailed (or personally delivered) summary report would resonate well with the way they like to leaf through and organize Yes and No piles of potential homes. The bottom line: people of all ages like to deal with someone who is an expert in their field, respectful, honest, and helpful. Strategic multi-generational marketing just helps you communicate these timeless, universally desired traits.

Episode 2: “The Price was Actually Right”

Ahh, pricing. It usually isn’t a big deal to get clients on board with a list price that will effectively sell their home… but, sometimes it is. In this episode, Leo shares personal experience with pricing a client’s home in Georgia too high.

Interestingly, this happened during market conditions similar to today. Prices were up, inventory down, and sellers were expecting to cash in on all the excitement. Sellers watched their uncle’s, cousin’s, and babysitter’s mom’s houses sell for crazy prices. Then they saw their neighbors’ homes go on the market for what would be 30% appreciation in a 4 year period. So, when they went to list their home, they expected to get their neighbor’s list price.

But we all know it doesn’t work that way. In a fanatical pricing craze, less experienced agents throw up inflated list prices with high hopes, and even though properties are selling like chicken fingers, those homes are not. They are lingering and serious agents eventually stop showing them and buyers are too intimidated to make an offer. Those homes end up expiring and going to another agent at a 20% price reduction. We get it, we know you’ve had to try to explain this to a client who absolutely insists on over-pricing their home. Let us know how you’ve handled it!

Enjoy our latest video, and be sure to subscribe to our YouTube channel and Facebook page for the latest news, content, and updates. Happy marketing!

Top real estate agents know the value of becoming the go-to person in their community. Here are five ways they’re getting ahead.

Why is being the “go-to person” in your community so important for a real estate agent? The industry is a very personal business, people need to feel comfortable with the agent they choose. Establishing yourself as that go to person assures people that you are a community leader, and the person they want to work with. Being active locally will create new business, referrals and lasting friendships within the community.

1. Hold free seminars – educate people on the local market, refinancing, retirement. Free seminars are a great way to meet people in the community and let them know you care. You are their real estate agent, and their resource when it comes to anything industry related.
2. Host an annual past client party – rent out a movie theater, the local zoo or just have a BBQ. This is a great way to show appreciation to your past clients and build a personal relationship with them. Also get referral business!
3. Consistent direct mail and online marketing – As a real estate agent, you always want to stay in front of your market. Marketing will allow the general public to know you, people want to work with someone they know and trust.
4. Community Fundraisers – Hosting fundraiser events for the local schools, or building a team to participate in a cancer walk are great ways to show you care about the community and are actively giving back.
5. Advertise that fact your audience and clients may call your office for anything – Need a contractor? Call my office, I can refer someone. Want to refinance your home? Call my office we will help get you on the right path. Just another great way to help people in the community and let them know you are their go-to real estate agent for everything and anything.

Are you ever face to face in a Wild West standoff with your competition? Of course not, but it probably feels that way sometimes. We know it’s important to continually work to get a leg up. One powerful and often overlooked way to do this is through making staging a part of your process (not just a tool to use under certain circumstances).

How to Leverage the Power of Staging when Facing Competition

According to an the 2015 NAR Profile of Home Staging (link) study, 71% of agents report an increase in price due to staging (19% weren’t sure and only 10% said there was no impact). About half of the agents reporting an increase reported a 6-20% improvement, mostly in the 6-10% range. Your client is almost certain to benefit from staging, and this can be powerful leverage in a competitive situation.

Surprisingly, a little time and money go a long way. According to NAR, the median cost of staging a home was about $675 in 2015, and the homeowners do most of the work. Your main job is to instruct them on the best-practices, and motivate them to stage with the highly-likely price increase on their home.

This is what we recommend:

1. Tell your client what to wash, paint, and fix, and what furniture, décor, and “stuff” to remove.  Recommend professionals they can hire to help, if they don’t want to do it themselves.
2. Tell them the best way to position all of the furniture and décor that make the cut.
3. Bring in some furniture (if the client’s material won’t show well). Keep a few key pieces of pre-purchased furniture on hand and enlist the help of the homeowner to do the physical work of bringing it in and positioning it. Other than the initial cost of these pieces, you aren’t spending money or working here, just coordinating efforts to get it in the house.
4. Polish off the staging. You should have several accent pieces in your arsenal, pieces that are neutral enough to work almost anywhere (vases, throw pillows, art, several sheer curtain panels, and a fireplace screen, for example). Bring the stuff over and assist the homeowners with ways to arrange it. 
5. Communicate in your marketing how you stage every home as part of your process. Share before and after staging photos in print and online. Share success stories of great feedback you get from walk-throughs on a beautifully staged home. Talk about how quickly you sell a staged home, price increases and how many offers you get.

If you have any concerns about your design savvy, we recommend you go through a two-three day home staging course. The expertise you gain will help you become a better stager, and you can showcase any designation you earn in your marketing. NAR reports that only 34% of agents stage all of their listings, so you’ll really stand out!

As always, feel free to contact us with any questions at (614)785-1111, and visit our website for more information on additional marketing.

A custom publication creates a lasting impression on your audience, make them remember you

When you’re publishing your custom publication with Discover Publications, we want you to make every page count. To that end, here are 5 ways to grab attention and get your readers to engage with your company.

1. An enticing lead article

Your front page story is your reader’s first impression. An engaging article gets your reader’s involved from the start is important and will peak their interest. An article about the local area and market is always relevant … it speaks to them directly, especially when they are sitting at home. Readers would like to know what’s happening in the market and if their home is rising in value.

2. Featured listings and homes sold and pending

Many of our clients like to use the giant 10” x 16” back page to show off their most prized listings. Use this space to your advantage by keeping your listings moderately-sized with a photo and a brief description. Always have a space where the reader can locate a number or website quickly to contact you if they find their dream home.

Having pending and sold listings shows that you can move homes, and move them quickly, thus creating confidence in your place as a market leader. Plus, the reader can see what home prices are going for in the area.

3. Call to action spaces. 

These spaces, strategically placed within the custom publication, are where you want to really sell yourself and make the phone ring. Use these spaces to search for possible sellers and leads. For example, the house that your reader owns is something your buyers are in need of and they may be looking to sell. Many use the spaces to promote a website with a message: a free home value or market analysis. You may also want to promote a charity event you are involved in, or an event you are sponsoring for the community. You can also use these areas to sell ad space to defer the cost of the paper.

4. Advertisers
   

Selling ad space in your custom publication to friends and acquaintances in the business is a great way to offset your costs. Our clients frequently team up with a staging company, financial company, title company, or insurance provider. We can create the ad if needed and bill the advertiser directly for you.

5. Testimonials

To further cement your place as a market leader in your area, having some testimonials from satisfied clients can show your human side, and highlight things you and your staff have done to create a positive outcome for your clients.

Use these helpful tips to make publishing your custom publication much easier and more successful.