Baby Boomers still have the money to buy retirement homes. As long as your market is a market where Baby Boomers come to retire you will still be able to run your entire business with baby boomer clients. So don't start getting all flustered if you just don't know how you are going to communicate with Gen Y clients.
Here is a social networking video that is well worth the watch- "The Social Media Revelution". For all of you in urban markets, west coast markets and trend setter markets pay attention to these Gen Y stats. The video is embedded below.
Even though the stats show that Generation Y'ers are going to surpass Baby Boomers in numbers I am not sure they are passing Baby Boomers in income.
These stats are interesting but they are not 'all that'.
This is just a part of the big picture.
There is certainly no lack of posts being written about how you as an agent better jump on the social networking band wagon or else you will get left behind in the dust. This is relative. This is relative based on your geographics and the cultures of those geographics.
I wrote more about the Baby Boomer stats here. It is a must read if your clientele is from our baby boomer generation. Most of the Baby Boomers retiring to Florida pay cash for their retirement homes and second homes.
We run two seperate and distinct marketing campaigns. One is our online marketing and the other is our direct mail expired marketing campaign. The last 3 sellers who called us from our expired marketing letter all were over the age of 60 and all of them, (they are married) did not use email, did not know how to use a computer and did not do anything online.
We also know from this video below that the fastest growing segment joining Facebook are females between the ages of 55 to 65. Again, let us go back to geographical areas. The couples that we just spoke with who do not use the internet were all living in Golf Country club communities. They all play golf, eat at the country club, go on cruises and trips with their friends from the neighborhood. Their entire social network is their 'off -line' neighborhood.
If you are an agent who is having a hard time grasping all the must do's on the internet for your marketing but you live in a retiree attracting area- you will do just fine for the next 10 years. If you are planning to retire within the next 10 years you will be busy with your clientelle moving here through your continued word of mouth referrals, your SOI and your direct mail marketing campaigns.
What you do need to educate your clients about is that their homes need to be marketed on the internet to attract other folks that may not know people living in your community already and show them the stats about where buyers come from. Don't overwhelm them with data or a presentation that will just frustrate them.
31 Comments on Baby Boomers Still Buy and Sell Homes!
SEP
19
2009
We are not 'booming' in coastal Carolinas but business has not stopped or relying on 1st timers either. SE NC and NE SC are very interesting to beach people and golfers looking for a great place to retire. Add our RE tax costs and the are is even more interesting to boomers!
The biggest part of our business are folks looking for a retirement or second home. And as you point out most of these folks are baby boomers. However we generate all our leads on line, If someone dosent have a computer they probably wont find us; or we them
As I (age 63) write this, my wife (age 60) is on the other side of the table on her computer working with her facebook and twitter accounts. Dont assume that we "old folks" are not up to speed with the internet. Although real estate sales are almost always done face to face, most of what we do to get to that face to face moment is done on the internet.
We dont need to keep up for the gen-y business, we need it for the boomers and olfer folks too.
Thanks for all the info, we have a lot of boomers coming to Maui. They just need to get off the fence. Rates are great, we are seeing some great prices.
Hi, Katerina. I live in an equestrian community in Tennesse and most of the residents are in their 50's and 60's. People here are very active and they're outdoors most of the time. My neighbor, who is 71, just bought a new horse so he could keep up with his wife on the trails. (I hope I will need a faster horse when I am that age! LOL).
They encourage retiring friends from around the country to move here, former riding buddies from wherever they used to live. Word of mouth and email seem to work best in this market.
Ron- I do not assume anything of the sort. Nestor and I are in our 50's and most all the 50 + people we know have never even heard of Twitter. What I am saying is that in certain geo areas, the business is still done via off line networks and word of mouth. We are online and we get a lot of listings online from people who have absentee properties that they need to sell but most all the phone calls we get from our direct mail is from baby boomers who still have dial up or not on line at all. The last 72 year old seller we had went to the library to get email if he needed to. He does have a cell phone but he does not do anything else online. We have a lot of 70+ sellers who do not have internet and yet are very wealthy. We also have 30 somethings and 40 somethings who don't use email. IT is all local, which is the point I was making in my post. I am NOT assuming anything. I am stating the facts as we experience them in our local area. Katerina
Leslie- I love your new photo! We are an equestrian community too and even my friends who are in their 30's hardly ever get online because they are spending their time caring for their horses, training and riding and of course socializing at the equestrian clubs and centers. Most all the business is done through word of mouth here. It is a no brainer! THat is why my best friend who is also a realtor for strictly equestrians never has to blog or social network online- her price point is in the multi millions and she gets ALL of her listings and buyers through riding!
Stevens- I am one of those boomers who is going to move to Hawaii. I should say back to since I lived there for 5 years. I think that Hawaii is a place where a buyer on the mainland must be able to get online to start their search unless they know someone over there who will guide them already. Katerina
Hi Katerina! I think 80% of my clients are Baby Boomers and they all seem to be doing well and can get qualified for a loan. Many are paying cash here.
N&K: Great piece about the relevance of Boomers! I'm not quite a boomer, born 1966, but I'm not quite gen x. Internet education is a daily practice. Cheers!
Katerina, Even though my business is mostly virtual I still have sellers where I have to mail them everything. No email. No fax. No internet access. The baby boomers are a HUGE market and will be getting even bigger as we all start getting older and start downsizing.
It's a great time to start selling active adult communities. And heating pads :)
We have a lot of baby boomers that come to Lake Norman and want to buy on the lake here for retirement. I am also noticing people seem to be retiring sooner (age). Maybe it's just me!
Katerina, I am amazed at how many of my office elders are doing a remarkable business even though they are clueless about Facebook, Twitter and all the rest. I think a lot of them use the time I spend on Facebook and Active Rain prospecting - usually making old fashioned schmooze calls to the center of interest. Still, most of the Boomers I know are at least as techie as I am. And my last client who was in the 80-something granny category had email.
We're located in the beautiful resort/recreation community of Bend, OR and have definitely noticed the increased "boomer" interest over the past year. Some of our clients are very internet savvy and others are trulyy technology challenged..but they still seem to find us - it's been truly amazing. Being a boomer myself, I love seeing my contemporaries realize their dreams of a retirement or second home!
What a great post and a good reminder that getting back to basics can't hurt. Sometimes it's difficult to remember that in this digital age where we are all feeling pressure to get online and into the 'social media revolution'. Some of my best and most loyal clients are 'boomers who do not have email or even cell phones. Good old fashioned personal greeting cards in the snail mail or dropping by for a cup of tea goes quite a long way for retaining and earning new boomer generation clients - and it can't hurt for gen x'ers either!
You make a very good point, we need to remember that not everyone is tech savvy and that they still buy and sell real estate either way. Thanks Katerina :)
Social media is definitely the newest way of doing the same thing: Getting to know people and them getting to know you so that when they are ready to buy or sell a home, they may ask you to help them.
Great post and a good point. we all find our niches. I prefer and tend to work with certain types. It just kind of evolved that way. I am gen X. So maybe I fall between some of the generational cracks.
Yes, we need more baby boomers to come here to the beautiful Carolina cities: Charlotte, Gastonia, and surrounding areas. We have great climate, 4 distinct seasons, and something for everyone. Come on down, and we'll leave the lights on for ya! grin
Great post!!! You are right that you have to figure out what works for you; and for me, it is a combination of the Internet and direct mailings. In Western North Carolina we are blessed with beautiful scenery and many options for an active lifestyle. People of all ages and technological prowness are moving here to work, retire and play. Do they open their snail mail or e-mail first? I don't know, but I want to be there when they decide. :^)
Katerina, you are so right - there is still a wealth of clientele out there who rely on old-fashined methods of finding their real estate agents and agents who procure their clientele the old-fashioned way. However, that way is changing as you pointed out. For longevity, we'd better re-invent ourselves, right?
Katerina, Thank you thank you!! There is a huge bunch of baby boomers and pre baby boomers that are not tech savy and could give a hoot about Twitter or FaceBook -- I sent an offer in last week and the listing agent reminded me that his sellers were older - no email or fax .... it's necessary to allow more time in the contract deadlines for their response.
There will always be both early-adopters and Luddites.
There will also continue to be a digital divide.
Most of our business comes via referral. That always seems to provide a much stronger tie than someone who shows up off the internet.
All that said, Wayne Gretzgy's famous quote of going to where the puck is going to be seems apropos.
Online marketing is key for my area too (at the beach & a majority in second home or investment properties). The Baby Boomer stats were good stats to use in presentations.
Online marketing is key for my area too (at the beach & a majority in second home or investment properties). The Baby Boomer stats were good stats to use in presentations.
I love that video Katerina! It is so eye opening. Even my 64 year old mom now has a netbook. She calls me constantly with questions but she is getting it!!
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We are not 'booming' in coastal Carolinas but business has not stopped or relying on 1st timers either. SE NC and NE SC are very interesting to beach people and golfers looking for a great place to retire. Add our RE tax costs and the are is even more interesting to boomers!
John Rakoci www.rakoci.com (843) 655 7777 john@rakoci.com