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The NAR Profile of Home Buyers and Sellers for 2008 reveals some important
secrets Realtors can't afford to ignore
Who are you dealing with?
The Profile of Home Buyers
and Sellers for 2008, compiled by the National Association of REALTORS®,
reveals some important secrets you can't afford to ignore. Here's the inside
scoop.
1. Gen X and Gen Y rule the buyer market
If you're working with buyers, you can no longer ignore the fact that 60
percent of today's buyers were born after 1964 (i.e. are members of Gen X
and Gen Y). In fact, 54 percent of first-time buyers are in the 25-to-34
age group. For Gen X and Gen Y, the primary motivations for buying was their
desire to own a home, a job-related relocation or move, the desire for a
larger home or a change in their family situation.
Opportunity: Since 75 percent of all first-time buyers are
currently renting an apartment, consider marketing to tenants in high-end
rentals. For buyers ages 18-24, 62 percent used social networking sites several
times per week. That number drops to only 33 percent for buyers ages 25 to
44. To earn the right to do business with this growing group of young buyers,
become an active part of the online conversation.
This does not mean promoting your services. Instead, consider sites such
as Facebook and Twitter to be similar to a social gathering where you meet
others who share common interests. Gen X and Gen Y want to get to know you
in a social environment prior to doing business with you. Dump the vanity
marketing that focuses on you and your accomplishments. Instead, show up as
an interesting, fun person who also happens to be a competent and likeable
real estate professional.
2. Empty nests
Sixty-two percent of all buyers have no children living at home. Among this
group, nearly twice as many single females (24 percent) purchased homes as
compared to single males (12 percent). Married couples overwhelmingly preferred
single-family residences (86 percent), compared with 63 percent of single
females and 65 percent of single males. In terms of preferring townhouse
or apartment-style condominiums, only 10 percent of married couples preferred
this type of property, compared with 31 percent of single females and 30
percent of single males.
Opportunity: Niche your marketing efforts to fit the type of
property you’re selling. For example, Gen X (born 1965-1976) appears to be
putting off marriage and having a family as opposed to Gen Y moms (born 1977-1994)
who have an average of 2.3 children. Thus, Gen X buyers may be better candidates
for condominiums or townhouses, while Gen Y couples may be better candidates
for single-family homes.
In terms of marketing to Gen X and Gen Y, these two groups dislike newspapers.
They do read magazines, especially those focused on lifestyle. When marketing
to both Gen X and Gen Y, show pictures of their age group enjoying the good
things about living in your area, especially pictures of singles and/or families
who are having fun. For older buyers, focus on couples downsizing or buying
second homes.
3. "Location, location, location" is
still true
While people may debate what really matters most to homeowners, NAR's research
shows the number one concern for most buyers (62 percent) is quality of the
neighborhood. Convenience to work was second (51 percent), while overall
affordability of homes, convenience to friends and family, and quality of
the school district rounded out the top five.
Given the high price of gas during the time the survey was conducted, it's
not surprising that 41 percent of all buyers said commuting costs were very
important and another 39 percent said they were somewhat important.
Opportunity: When working with buyers, be sure to explore what
constitutes a "quality" neighborhood as well as potential commute
times. Gen X and Gen Y place more emphasis on time spent with family and
friends. Be sure to discuss these important issues prior to showing a property.
4. Age influences how long the buyer will live in their home
The median time that buyers between the ages of 18 to 24 expected to stay
in their homes was six years, compared with 10 years for those 25 to 44,
and 15 years for those over the age of 45.
Opportunity: Younger homeowners who have been in their homes
four to five years are more than three times more likely to put their property
on the market compared to older homeowners. While 21 percent of the 18- to
24-year-olds plan to sell in four to five years, only 17 percent of those
between the ages of 25 and 44 plan to sell. For those 45 to 64, only 6 percent
plan to sell that quickly and only 3 percent for those 65 and older. On the
other hand, the prime time for buyers to purchase a second or retirement
home is between the ages of 50 and 60.
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