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A Slap Upside the Head...How Gen Y's Are Changing What it Means to Buy & Sell Real Estate!

Gen Y Sometimes you need a smack "upside" the head to jolt you into reality. Well, it was two smacks for me today to be precise. Delivered via virtual space long hand in a couple of blog posts. Mark Eibner, the Real Estate Zealot, writes a blog post entitled "Are You Gearing Up for Gen Y Business?" in which he links to a recent CNN article about the 17 year old kid who unlocked the I Phone's tether to AT & T; making it possible to use the phone with other carriers. This was big news on August 24, 2007. Although I did hear about it on the national media, I didn't fully grasp the implications of what had happened.

Reading the CNN article clarified things for me. The code that tethered the iPhone to the At & T network was one of the most closely guarded secrets on the face of the earth. The system was programed to be be unbreachable by some of the most brilliant computer experts on the planet. It also represented potentially billions of dollars of proprietary business; blocking out other would be competitors.

The fact that the code and process could be unravelled so quickly was astounding...but by a 17 year old kid! After accomplishing this monumental feat, the kid posted all his "how to instructions" on-line for other would be hackers; apologizing that it was such a cumbersome process. He also gave "assistance credits" to two individuals from Russia whom he didn't know apart from their on-line monikers. Thus heralding, a new concept in collaboration...networking to create solutions across the globe by collaborating anonymously with others on-line towards the accomplishment of a shared goal. Talk about kicking the concept of Free Shareware up another gigantic notch.

This is how Gen Y thinks. And this is why they won't do real estate the way their parents did. They have this insatiable desire to share...everything. On-line music, blogs, games, movies, shopping....The fact that we can obtain real estate information anywhere for Free is baseline for them. That's par for the course.

They also have a radically distinct view of "ownership." The kid (of iPhone hacker fame) felt that his solution to the "problem" faced by many who were held "prisoners" to a proprietary system was ultimately the property of the world. This is the generation which created major headaches for the recording industry with pirated music from Napstar and thought it was cool to allow everyone to listen to music for Free. Will this approach to ownership and proprietary information make the current process of broker aided real estate transactions seem archaic if not downright draconian?

Perhaps we are about to witness a radical transformation of the meaning of the word transaction...how it's executed, how it's paid for and what it is. The Real Estate Transaction of the near future will embody elements that cannot be imagined today. It is certain that there will be a re-definition of the meaning and value of professional expertise. We can also anticipate that the relationship with the "expert" will be much more collaborative and interactive than it is today. Real Estate Blogging represents the primary swing into the first portion of the arched curve around this track.

This also underscores why *76 Million Gen Y's (1982 - 2000) connecting to the real estate market within the next decade will make the real estate transaction of today feel like viewing the relics of a dinosaur. I quote from the Mike Eibner, the Real Estate Zealot..."All media is moving to the palm of your hand and this includes real estate." Are you ready for a revolution that's aims with the precision of a pinpoint to transform the world with the gentle side swipe of a finger?

Stay tuned for the next installment of My Second Slap Upside the head!

photo by Personeelsnet's on flickr.com

*Edited/update: #number of Gen Y's. A lot of conflicting information regarding the exact number of Gen Y's, but 76 Million seems to be a number which is more reflective of current norms depending on what year you start the count.

*Blog Update #2: Christian Sterner has written an excellent post about Gen Y's and Marketing. With his permission, I am posting this link: Top Four Reasons Why You Should Not Use Video in Your Marketing. Christian shares some great perspective and insight.

Click Here to Read More about Grand Rapids, Michigan

Posted by Lola Audu~Real Estate Broker/Owner Grand Rapids, Michigan Real Estate on 09/06/2007 06:29 AM

Comments (95)

real estate, real estate transactions

Originally posted at: Inspired Real Estate For Today: A Slap Upside the Head...How Gen Y's Are Changing What it Means to Buy & Sell Real Estate!

95 Comments on A Slap Upside the Head...How Gen Y's Are Changing What it Means to Buy & Sell Real Estate!

SEP

2007

Lola, very thought provoking post! I have a 23 and 25 year old Gen Y's and I try to glean information from them about how they think in today's world. I have had my eyes opened several times on concepts I wouldn't have considered. I agree, we must learn to change with the times!

Good post Lola. I although I understand how and why this kid unlocked the iphone, but I struggle to understand how this will impact buying and selling real estate. I talk to so many gen y who seem to have no interest in buying a property.

This is definitely a generation to pay attention to. I'm right between being a baby boomer and generation x er (but I feel more like a boomer).

You couldn't be more correct. Slap em all upside the head and be ready for change. I would like to think being here on AR and the blogging concept which is still fairly new to real estate will help me and everyone else compete..... but the world is changing........... Who moved the Cheese?

Hi David, Thanks for your comment. The world view of this particular generation is very different. My kids are in this generation and it is fascinating to talk to them and watch their interactions. Their view on ownership as reflected by some of the trends which have been affected as they have come of age will impact many aspects of the economy...including real estate. It's the how...that's intriguing to me. :)

Lola,

Great article, giving you a "High 5". Growing up as a "Gen X'er", I didn't have the tools or the technology that the "Gen Y'ers have at their fingertips today. As the information society evolves, those who do not keep up with current technology will be on the other side of a Great Divide: The educated & the uneducated. And in order to stay current in the Real Estate market, clients expect and demand that their service provider be technically knowledgeable in all aspects of the transaction.

Ava, it means we need to be prepared for high tech real estate, and not lot of paperwork formality hoopla.

These will probably be the kids who hack the mls' databases and let everyone have all the private info just for realtors! LOL

Great post! Its great to see what someone else thingks about Gen Y.

Och!...thanks, I needed that! Great reminder to keep thinking and moving and adapting and learning, and, and, and....

Ava, Thanks for your comment. One way in which we are already being impacted is in the valuation of property. MLS systems are being forced to respond to the fact that a number of databases which can be accessed on-line are providing Free CMA's for property and including demographic data. I wonder if this might also affect the types of mortgage offerings which will be available...perhaps fractional ownership in some fashion??? I wonder...

This looks to be another great post Lola! I'll bookmark it now, because I want to give it my fair attention later.

In GA one of our MLS system is also a public system and in my opinion the private system for that particular MLS doesn't offer anything extra. Also concerning "high tech" I feel like most people on AR are already either doing or learning some pretty hi-tech things.

Hi Karen, I feel that way too...But, I really enjoy talking to Gen Y's because in some ways they are incredibly cutting edge in their thinking and demonstrate a maturity which is startling.

Thanks for answering Lola. Fractional ownerships now that would be interesting!

I so agree. Free enterprise to another level. We are so open now to sharing when it is just a matter typing in our protected space and at the same time being rewarded with free knowledge and ideas from others. Yes we do have to be on our toes more but this is a real fun time now and we all just need to know how to ride this surf and enjoy

Desiree...sometimes it feels more like "who kicked the cheese to the other side of the building while I was blinking??" :) I know that for me being on Active Rain has been crucial in exposing me to many new trends in real estate. For this, I will always be grateful. Thanks for stopping by to read and comment.

Harold, you bring up a great point. There is a radical redefinition occurring about what it means to be "educated." As agents, we are still focusing on our designations...has our world changed and we just haven't realized it. Education is changing at lightning speed. I just watched a 60 Minutes piece in which a plan is being implemented to give lab-top computers to every child in the world! Will the agent of the future who has every designation available in "real estate land" but who barely uses e-mail truly be considered a serious professional??? I wonder...

Karen...my goodness, you're probably right. If they can hack the iPhone...what's to stop a hacking of a proprietary MLS system if someone really wanted to do so. Very interesting....

Hi Nick...Gen Y is an incredibly important generation. They have larger numbers than the Baby Boomers and they are already having a huge economic impact. Being unaware of the potential and power of this unique generation is not smart. Thanks for your comment & I wondered are you a Gen Y?

Lola, having two gen Y kids age 22 and 25 so I can totally relate to your post! I have become web savvy trying to keep up with them. My daughter built my first web site about 7 years ago. She got her start building buffy the vampire websites. I decided if she could build a website so could I.

Hi Deb, Yes we all need to keep on our toes and keep growing if we want to remain relevant. Thanks for your comment.

Jason...Thanks for stopping by. :)

Ava, Very interesting..Are you indicating that you have a public MLS. I'd be very interested in knowing a little more about how that works. Fascinating. I also am intrigued by your comment that the two systems seem to be fairly comparable from a "functionality" standpoint.

Yes Ava...very interesting! But for a generation that has grown up with the concept of "sharing" a lot of things...perhaps an option...who knows!

Hi Stanley...it does bring a whole new dimension of what it means to surf on line doesn't it? I agree that this will be a lot of fun...it will also be very challenging!

Ahhh. Two of my four kids are Y's (1997 and 2000). I wonder what the new term will be for my other two babies (the Z generation??)!

The whole Iphone connection to the MLS system really hits home! However, what these kids don't understand is that everything doesn't belong to them, they don't have a right to have things they didn't pay for or invent.

Does that hold true for information via the MLS, I'm not sure. Sherry

Lola - this is downright scary.

To think that this young man has so much talent and he is using it in a illegal manner is disturbing. If he would apply himself to a legal task he could, and probably would, be a millionaire a couple times over - minimum.

Scary, I tell ya.

Technology and business will be changing so fast we will not recognize it in a couple of years. Be part of the change or be left out.

SEP

2007

Adjust quickly or go away. Learn how to communicate quickly and efficiently or go away. Gen Y's want everything NOW. Great post. I give it a 5!

Love this ! Yes they are very different. I found out by showing houses to a GEN Y guy. I never take calls during showings, unless it is my children calling. The phone kept ringing and I would stop it, he told me to go ahead it didn't bother him. Older folks and my generation, boomers, think it is rude.

Ava, you are so right on the mark with this post. There is an undercurrent with Gen Y that they have a right to information, technology, tools- even if it is patented, copyrighted, or otherwise "protected".

They will not work with agents in the future on the old system of farming the market or creating referrals from past clients and family members. They will reach for peer recommendations, most coming from the online world.

It is time for everyone to adopt- Blogging is an important first step. Evolution is constant on the internet- so be ready for change.

Rebecca D. Levinson- http://www.connect2agent.com

Lola - Excellent post. I also heard the blurb on TV about the kid and his code breaking, etc. I had not given it to much thought but you are right. This Gen Y will be a a different market than their parents!

Great thought provoking post Lola.

That said, until the Gen Y lerns to put their dirty socks in the hamper, they will not be taken seriously.

With some exceptions, the Gen Y are still finding their way in this world and until they do, they will not constitute a movement, only anecdotes.

When they finish their education, get a job, are ready to start building a financial estate and buy a home, for themselves and perhaps a family, they will then become mainstream and not an anecdote.

Of course, the stream may look different.

Lola, Moving with the times is tough for dinosaurs like me. This whole new Gen Y is going to take a few upside the heads for me. The techie in me truly needs to cultivate. Thanks for the heads up!

LOL - Len, I know a lot of baby boomers that don't put their socks in the hamper, or anywhere else. LOL

Your comment "Of course, the stream may look different" is right on. I don't think it MAY look different, it WILL look different.

Just stop and think how vastly different our culture is now compared to 50 years ago. So much of what was important then is all but forgotten now or a distant memory, recalled with a sardonic smirk at how old fashioned things were.

I for one, wish I grew up during the 40's and 50's. Seemed like a more genteel time to me. But then again, maybe I'm looking back with rose colored glasses, framed with nonsense from The Waltons and Happy Days.

lol

Hi Lola- I am laughing over Lenn's comment & Karen's above mine, but this post is really on target. Even the younger Y's have access to the world at their fingertips. I'm not sure if it's their desire to share, or their sense that they are entitled to have whatever they desire that brings the change, but the change is coming!

I love working with my twenty-somethings. They are smart, tech savvy and don't waste a lot of my time. They are pre-educated on the subject of real estate before they call me.

When they do call me they expect me to know my stuff and to know how to relate to them, tech wise. And you know what? Because I do they treat me almost like a father figure. They respect my time and attention MORE than my forty-somethings. That's a fact.

So yes, real estate and technology and our client base is changing. I for one, with the way I structure my business, am very happy about this. I see change coming. And I like where it's heading.

I am ready for the Y's bring it on! Great post.

Lola -- this is an insightful post -- beyond the impact of their technological expertise, I love that you highlighted the fact that Gen Y looks at the world through an entirely new and different paradigm. Shared information and shared challenges hopefully will translate into shared responsibility to create a better world. I love that they realize that they are part of a greater whole and that their knowledge, expertise and actions have an impact on others. OK maybe they don't realize it yet, but some of their actions indicate that they will! (After they learn to pick up their socks!)

I think this bodes well for the environmental and social problems we face as human beings. Complex problems -- a mass of individuals coming together creating solutions -- the future is looking bright!

Wow! This is a very interesting post Lola. Doing business with Gen Y's is going to require a certain set of skills and resources and a whole lot of technology. I think Harold's comment is right on target. On the bright side...wasting hours of your time and gallons of gas driving clients around to several houses may quickly become a thing of the past as resources for sharing a homes qualities online continue to increase. Have you ever heard of Second Life? There are already agents out there selling virtual land and virtual houses.

Lola,

Great post! It is true Realtors need to be more into the internet and how to market to the next generation if they expect to get the business of the Generation Y group that is starting to buy property. Thanks for the eye opening post.

I just helped a couple in their early 20's purchase a townhouse and I really had to stay sharp with them. It's seemed like they were one step ahead of me the whole time. It was nice to work with such informed buyers who knew what they were doing but a little scary to think they probably could have done this without me.

great post. In an effort to conect with the gen Y, i suggest belonging to some of the popular online communities like Myspace. Although i have not directly received much business by doing this, i have been approached by people while i'm out who say they've seen me on myspace, or AR, etc. It's led to several leads, and makes people see me as an agent who is adapting to survive in this tech world.

Lola: Wonderful post and very informative. It seems like I find myself saying this more and more often...we can learn so much from our children if we just listen. The Gen Y's do expect something for nothing or almost nothing and believe they can do things themselves often faster, better and cheaper than others and where do they go....on line, for they realize everything is right at their fingertips.

My college age son just bought a very used college book for $70. and this bothered him...what did he do?? He went on line, found this book brand new, which also included a CD along with the study guide book ,then had it shipped all for less than $30.

These kids are truly amazing and we will need to work very hard to keep up!

We do need to stay abreast of changes in the generations and in technology - I still give presentations to Realtor AM groups and talk about AR, blogging and Real Estate Shows, etc. - they don't have a clue. I send them invitations to AR and so far 3 joined and do nothing. They even say that they are told by their companies to blog , but don't.

The kids pass me by on the texting, tho - I would rather talk on the phone - & I want an unlocked IPhone - where is that kid!!

Lola,

Great post! I have to say I'm experiencing the difference first hand. My dad, total baby boomer, is also a Real Estate agent. Me? I'm either Gen X or Y depending on what year you consider the cutoff. Anyhow, at one point we worked under the same broker and he of course, was my mentor. This drove me insane. I'm pretty sure he felt the same way about me at times. We just had total differences on how we were each going to run our business.

Collaborative the the keyword here. And I love that about this generation - they are out there doing some of the work and engaging in ways their parents and grandparents would never have considered. On the flipside, they needs LOTS of kudos for their efforts and if we are savvy enough to feed their self-esteem, we will be successful with them and their friends too!

I'm waiting for the second slap!

Wow Marchel...the way these kids interact with computers is amazing. At their ages, I was still intimidated by computers.

Hi Sherry, They do seem to view the concept of "ownership" very differently than previous generations. Some things we would call "theft" they think of as "sharing." In a world where "pirating" is increasingly becoming a problem...this is a significant issue.

Carol...Yes it's intimidating and interesting. I haven't heard much about the "legality" of the kids actions. He bought his cell phone and simply figured out how to use it in a way the manufacturer had not originally intended.

However, I think that his action to broadcast his "solution" to the world for FREE has a key component in understanding how business will be conducted with this generation. The solution was so complex, that there is talk of a Side Industry springing up to do this for people who can't figure it out from the FREE instructions! :) Go Figure...

Lola, I come to your blog to "steal" ideas. I'm not sure about this one though.

I can't talk to "aliens" and that is what these kids are. I'm just too old. I'll leave all that money on the table.

I will continue to build my niche. If they are really smart like you say they will learn how to talk to me.

Bill Roberts

Hi Randy...not a comforting thought...but probably totally on the money! Thanks for stopping by.

Hi Ginger...Many Gen Y's do tend to be a little more impatient. They have grown up in the age of "instant" everything...I wonder if this will remain a defining characteristic or if they will eventually yearn for a simpler, slower pace to life. hm....

Hi Missy, Thanks for stopping by to read and comment. Gen Y's do have a different take on manners. I think it's a combination of youth and the environment in which they have grown up. They are not offended by many of the things that we find irritating....and yet are far more involved in certain social causes than their parents.

Hi Lola,

I was born in 1981, so I don't quite meet the Y generation time bracket, however I feel that many real estate professionals that are older than me by 20+ years think that "i pod" generation is just out of their minds and most of these professionals "move" at the speed of a turtle when it comes to real estate transaction. Now, to clarify as to avoid "hate mail" ;-), not all of them, but many.

Rebecca...your insight about peer recommendations is great. They have taken the concept of the "peer group" and totally exploded its boundaries to "the world." This inclination to be more inclusive is, I think, one of the defining characteristics of the Gen Y's.

There will be solutions developed to cope with copyright issues. We see it already. There are a number of FREE programs that allow you limited use and then when you're hooked...you have to buy it. This type of thinking takes full advantage of the thinking of this generation. It also allows a product distributor to benefit from word of mouth/association to potentially make much more money than if the only option was to buy the product outright. This could have interesting implications for the real estate community.

This is why we blog!! I can even see it in my 10 year old. He once asked me (after building his first computer) how old I was when I build my first computer. He will NOT be doing real estate the same way I do! He will not pay for anything unnecessary and he will define unnecessary very differently than many people do now.

I think this will benefit great agents and become the downfall for the very agents (internet only agents) who think they are giving what the public needs. The public doesn't need just facilitation. They need counsel and guidance. That is something that, currently, you can not get over the internet.

Hi Gary, Thanks for stopping by to read and comment.

Lenn...Interesting take on the anecdote concept. And are they ever creating interesting ones. I have one Gen Y who has started a couple of businesses already! And yes...the dirty clothes being placed in the hamper is an ongoing problem. Sometimes, I feel like they will NEVER learn to do that...even as they run circles around me with technology. Such is the paradox with this group of individuals!

Diane...Believe me...I can relate! :)

Karen...With regards to Lenn's comment about the "stream looking different."..it probably will! One of the things I've found very fascinating is the resurgence of "retro" style. When I've sold homes to individuals in this age group...many like the older style home with modern accessories. My kids listen to music from the 60's & 70's along with contemporary artist. Gen Y is very eclectic in their tastes and these inclinations will transform the qualities of the "stream."

Hi Allison...it's probably a combination of both the desire to share and a sense of entitlement! Just looking at that statement makes me amazed by how unique it is. Sharing... and yet feeling they deserve the best. It really is extraordinary!

Chris...Thanks for sharing your insights and experiences. I enjoy talking with these kids! They are open to new ideas. They have grown up in a world where there has been so much instability that they truly appreciate adults who accept them and listen to them. I think you are totally on track about some of the ways we have to change our approach as an industry in serving them. Change is coming...ready or not! :)

Rebecca...good for you! :) Thanks for your comment.

Lori...Thanks for sharing some great perspective and insights! There IS an opportunity here if we can correctly discern it. Pride, individuality at the expense of others and greed have all created their share of NEGATIVE impact on our world. Perhaps, we can learn a thing or two from our kids. And maybe their ideas about how to do things differently will be a source of unexpected deliverance in some key areas...the environment being one that comes to my mind too!

Hi Bonny, Thanks for stopping by to read and comment. I just recently heard about Second Life. I can't say that it totally makes sense to me yet...but I find it very amazing. It is a sign of the times!~

Hi Rhonda...Thanks for stopping by to read and comment. We will be changing probably more quickly than we currently anticipate.

Steve...this section of your comment says it all: "It's seemed like they were one step ahead of me the whole time. It was nice to work with such informed buyers who knew what they were doing but a little scary to think they probably could have done this without me." This is what will change the way real estate business is done!

Joshua, Thanks for your comment & sharing your experience. The way we market ourselves and our services will also change to reflect the changing expectations of Gen Y's. I'm intrigued by the fact that you've been approached because you were recognized on your myspace page. It seems to me that this would be a distinct advantage...Eventually this should translate into business.

Hi Therese, Thanks for stopping by to read and comment! You story made me smile...Gen Y's come up with solutions that we would never think of because they look at life through a radically different prism!

Hi Kathleen...I think I heard "the Kid" quoted as saying "he wasn't taking calls." :) Thanks for stopping by. I appreciate your comment.

Chris, That must have been an interesting challenge to work with your dad! I'm a Gen X...just outside of the Boomers and would probably have the same challenges working with my kids! :)

Jennifer...Gen Y's tend to be more collaborative and comfortable functioning within a group than previous generations.

Bill...you had me laughing out loud! :)

Anna, Thanks for weighing in with your comment. We are going to have to change. It's already happening but the pace will continue to increase. This is the challenge for all agents. Perception has a way of becoming reality. Gen Y's need to perceive that our value as professionals serves their best interests.

Be honest in your portrayal of listings, use technology to hone a volume transaction business, and don't waste their time with fluff marketing. I saw a few comments about how the iPhone hack could make so much more money working on legal projects. Guess what...hackers that succeed in this type of "mischief" make tons of money on the white hat (good) side of things. They have to prove that they can crack code, and then people like Apple hire them to try to hack their products. This was obviously done with the iPhone: they just picked the wrong hackers to test their safeguard. I last worked for an internet security firm, and closed new account that had just had $400,000,000 stolen from their bank via a key logger (a piece of software that logs the keystrokes of the computer's owner). The MLS is a much easier target: that I can guarantee.

Virginia...I'd love to meet your 10 year old! Wow! I didn't start working on a computer until I was in high-school. My kids have had computers since they were in grade school. I think your insight about paying for what is perceived as "unnecessary" is totally on target. Many real estate agents don't fully grasp what aspects of their jobs would be considered "necessary." The definition of "necessary" is morphing into being providers of facts and information to being interpreters and facilitators of a comprehensive process/strategy.

With my experience in a hi tech career, it was easy for me to adapt to more technology and use it to stay in touch and run my business. So these younger buyers are fabulous clients to me. They work exactly as I want to and appreciate what I bring which is the ability to make sense of the overload of information they gather on the homes they see on line. They still don't know as much about the market as I do and they need that info in a fashion they understand.

While I understand the comment someone made above about "they probably could have done it without me" I completely disagree. Maybe they can find a house without me but frankly I see far more property than they do and know houses and neighborhoods so even the search process is benefitted from an agent's guidance. But it's navigating the minefield that is contingencies and the current mortgage crisis where my ability as a Realtor will get them to their goal so in fact I don't think they can do it without me. Contracts written for $500,000 on average once every 7 years or so require professional guidance.

It's up to us to deliver what they need and remain as relevant as we've always been. So the stream changes. It's changed before and it will change again. We adapt and learn!

Christian, Thanks for stopping by and sharing some great insights! It is fascinating to see how other industries are utilizing the unique characteristics that set Gen Y's apart...ie hiring gifted hackers to help ensure that proprietary code remains exactly that! This is an example that the real estate community can learn from. As we seek to understand, we may find that there are far more effective ways of doing things...or perhaps that we have been doing the wrong things. Your post about videos is an excellent example of this! With regards to MLS proprietary systems...unfortunately, I agree.

Josette, Thanks for your insightful comment! What you have stated is "light years" away from thinking that a real estate transaction is about placing a sign in the yard and correctly filling out paperwork. I appreciate your stopping by.

Great post Lola! I don't think Gen Y will be able to turn the real estate business upside down as they have the music business (real vs. intelectual property), but I do think their ideas and preferences will re-shape the way transactions and marketing are done. This really gets me thinking....!

Kevin, Thanks for stopping by. I appreciate your thoughts. It will be interesting to see if Gen Y's have a radical impact on the market or simply provide the critical "shift" in thinking that steers us on an altogether new course. My sense is that this process has already started...my concern is that as an industry we don't comprehend the nature or impact of the transformation.

Interesting post. I think it misses the mark on "Gen Y'ers" though. It is not the idea of "ownership" that will change - it the idea of the value of PROPERTY that will change. Think about it this way: If all the free MLS, home valuation, crime and neighborhood information is out there, FREE, what does that do? It changes the ability of the Gen Y consumer to be armed with knowledge and move faster for transactions. You can see things done these days already - homebuyers need to be preapproved for home loans. The Gen-Yers are learning this. They are also learning to research car purchases by looking for published Invoice Prices on cars - and negotiating from there.

Make no mistake. Gen-Yers will grow up. They will learn the value of money. They will learn the value of making money and paying for stuff on their own. So dont think they'll change the idea of "ownership" to mean "share". It's not that at all. Why did the 17 year old boy share his knowledge? It's KNOWLEDGE. He didn't SHARE his product - the hacked iPhone! He sold it (traded) for a car and 4 iPhones (or was it iPods?). What he shared was knowledge.

This new generation does not hold a monopolistic view on "intellectual property" as Boomers and others before them. This is clear in the MP3/Napster/Limewire ongoing litigation. The idea of intellectual property is not sacred post the Internet (and free information). Therefore, the new generation does not value a monetization of intellectual property in quite the same way.

But PROPERTY? You better believe they value that! So NO - FRACTIONAL OWNERSHIP will not be a part of that picture - unless it's some piece of property of value (vacation home).

The takeaway of this for ALL future real estate agents/realtors and mortgage LOs is this: Be EXPERTS in your field, help these Gen Yers know what the real deal is, help them to successfully navigate the process - facilitate and hold their hands, and they will keep working with you.

As an SEO Consultant, I'm constantly on the phone explaining to clients SEO, PPC, and Internet marketing. I freely give away (mostly) my knowledge. Cause I know that no matter what, SEO is NOT my clients' main business, and as much as they learn and do on their own, it's time consuming. They get fed up eventually and want someone to do the work FOR them.

Same thing with Gen Y homebuyers. They'll learn, do their research, but in the end, the realtor needs to facilitate the process, the LO must get them into the RIGHT loan. The future will be more about service than ever before - which, really, brings it all back to the very beginning - the very core: service!

Hi Al, Thanks for adding some broad insights to this lively discussion. I'm intrigued by this thought: "It is not the idea of "ownership" that will change - it the idea of the value of PROPERTY that will change." I'll be chewing on that one. :) You're right about the fact that the "kid" didn't share his iPhone!

With regards to your comments on good service...this is already becoming a "rare commodity." Several others have also noted through their comments that the ability to provide the wisdom and insight to facilitate an efficient transaction will be increasingly valuable, not less so. Appreciate your stopping by.

Hi Lola! This eye-opener should help us prepare/brace for new changes. This is an excellent time to recruit the Y's!

Great blog. You are 100% correct. We have 8 generation-y kids and you hit it right on the head.

My 18 year old told me the other day that he thinks the mls as we know it should be revamped and made public to everyone. He feels people should be able to sell their own home their own way and then have the documents transmitted online and emailed and signed and the money transferred electronically, all without people having to leave their home except to view the house. He said people could pay the website owner a fee to list their home on a nationwide listing service. He said to forget newspaper ads because his generation doesn't read the paper anyway. They read everything online. He also said that it would save on trees being cut down because it would not require any paper just a national id/password. It would also save on gas to closings, offices, etc. I told him it would put out me out of a job and he said I'd find another way to make money like other industries that were phased out with technology. That's the short story.

That is just one kid. If my own son thinks this way, I can only imagine what others will be thinking. This generation doesn't want to be told they can't do it themselves. They will find a way. They don't think like us. They want to know everything and do everything their way. They won't accept no as an answer. Times are changing and if you don't change with it or prepare for the inevitable you will be left floundering.

Lola-Yes I am starting to see a difference already in the way the kids think. I am right with them on many things. I have been trying very hard to adapt. I believe that is the key to the fountain of youth or young at heart. Sometimes I feel too tired to keep up but there are days their ways energize me. I think it will be very interesting to see how real estate sales will unfold... Great post and I can't wait for the 2nd part.

So true. It is important to think of the next generation as we all get old and need the youngsters to keep us on our toes.

Hi Lola;

Excellent post-I was munching away on every word like when I'm really hungry and can't eat fast enough.

This is one of the reasons I have moved right into the middle of the hornets nest at NowLive.com with my Hornet Nest Radio Show. The place is full of Gen Y's.

So, common in and take the next step in the technology revolution "Social Broadcasting" collaborating, interacting, chating, sharing, creating instant relationships on the Internet.

To Your Success,

Coach Steve
Real Coaching Radio

From a gen Xer with, gen Y and millennialdaughters, I can tell you this new wave wasn't hard to see coming. Technology changes everything even the old dinostate agent!

Want a couple of examples of that new wave? Look real hard at these sites if you haven't already seen them.

http://buysiderealty.com/

http://www.getmeonthemls.com/

I'm sure we will see more of this very soon and guess who will fly to this like moths to the flame?

Gen Ys are very intelligent and will figure out the best, most economical way to transact the purchase of their home. Just like the example of the kid with the Iphone.

I know Wikipedia isn't a iron clad reference but if you read about the different generations and numbers Gen Y is roughly the same size as the baby boomers. Very significant!

About double (the 48 million) Xer's! We slacker's just can't catch a break. anyone need a McJob?

Lola,

It certainly is a new brave world we live in... or should I say that we need to be brave in this world we live in!!! The old biz models that we've operated with are gone, and if we are to survive, we must adapt! Great insights in your article.

Thanks,

Rick

http://www.RickTurner.com/

I think those here who have embraced the blogging platform are well on the way to embracing the changes in our profession technology will bring. Onward and upward!

That is unbelievable. Fortunately, that type of hackability amongst teens, really is rare. Unfortunately, the fact that they shared the information with everyone else, probably will pave the way to their future expectations. I guess we'll have to watch and see what happens, and be willing to adapt to changing situations.

Many GenY are so used to sharing that real estate needs for them will be shared rent, shared kitchen, shared living rooms, with separate bedrooms. With their overall lack of desire for ownership (not a priority at least), they will probably be renters rather than buyers. Therefore, homes that are conducive to communal type living will be ideal investment properties for GenY renters.

Rob

SEP

2007

5 Stars for Lola, and a Bookmark to boot! Thank you!

Have to keep on learning and keeping in the current mode.

Well, gotta roll with the changes...but I'm with Lenn...grow up first. My kids are 25 and 26 although they are responsible kids and don't share (just kidding) they do pick up their clothes and wash their own clothes though but still living with gramma. I too get energized by some of their ways...(Midori's comment) and it'll be interesting to see what transpires.

Awaiting the next post...

Lola, I'm back.

I'm still reading your comments. It is very clear to me that if we don't re-define ourselves, we will be re-defined by market forces. If these kids are the market forces so be it.

I for one think that we need to "establish" just what a real estate broker is and then "guard" our turf. We are under assault from all sides, not just these kids.

I'm in the process of writing a post on the battle we are having or should have with attorneys. If we don't guard our niche we will find that we have very little ground left to stand on.

Bill Roberts

Hi Diane, Thanks for stopping by and commenting.

Todd...Yes, to these folks we are definitely "older." :) I'm sure that Gen Y's will keep us all on our toes!

Midori...I feel your pain. :) We all thought that real estate was hard work...and this was before blogging!

Youtube is the wave of the future - do you have your camcorder (or is that genX) ready? :-)

Hi Cheri...Thanks for your comments and for sharing some of your son's thoughts. It will be interesting to see if the perspective for Gen Y's changes as they mature. I suspect it will. However, I think they are fundamentally different in some unique ways particularly because they have grown up with such incredible access to information. Consequently, Gen Y's have an entirely different relationship with the acquisition of knowledge than previous generations do.

How this will translate into business waits to be determined. But, I know that encrypted signatures would make the sort of closing that your son mentioned possible! I was amused by his response to how technology would affect your job...oh, the luxuries of youth. :)

Coach Steve, I visited your site and I'm listening to your radio show and your conversation with a caller from Costa Rica. This is really cool. Looks like a wonderful way to connect using technology in an innovative way. Thanks for stopping in and posting a comment and the link.

Hi Brad, Thanks for sharing your thoughts and the links. The websites were very interesting and are indicative of a trend that is growing. There are pros and cons to these emerging models and the marketplace will determine what eventually thrives.

Recently, I had some significant computer issues which had me on the phone for many hours talking with operators in the Philippines trying to resolve my problems in the United States. Eventually, I hired a local specialist who came to my home and was able to correctly identify and correct my issues.

As I explored the sites above and read the news articles, I was struck by the fact that these "cost savings" will probably be obtained by giving up some level of service. Both companies had centralized call centers...I shuddered...could buying my house in the future resemble the recent experience I had trying to get service on my computer?? I wonder...

The only issue will be if there is a blackout or the web gets shut down due to a virus or something. This generation won't know how to survive without the web and all of the other technology!!

Hi Rick...Thanks for sharing your insights. The old business models are gone but what has not yet been completely determined is what the NEW business models which survive and thrive are! That being said...one thing is certain we would all do well to be open to change and to be brave! :)

Hi Chrissy..Thanks for stopping by to read and comment. I have certainly learned alot throught blogging!

Hi Lisa...It may not be as rare we would hope. The biggest issue to me is why...my generation would not have invested time in 'breaking the code", we would have saved to buy the phone and then used the network provided...at least the vast majority of us would have. :)

Hi Rob...interesting point. Many Gen Y's have lived fairly affluent lives compared as a whole to other generations at least in this country. It will be curious to observe to what extent their desire to "share" goes. In many parts of the world, people live much closer together than we are accustomed to here. But with house prices skyrocketing, this may be one of the adjustments that people will be willing to make in the future. Who know...

Thank you for the comment and the compliment Patrick!

Hi Bob & Carolin...Continuing to be open to learning is the key! Thanks for stopping by.

Hi Sally, Thanks for stopping by to read. I appreciate your comment.

Hi Bill, Thanks for stopping back. I am intrigued by your article on the "battle" with attorneys. I'll have to read that.

OK Lola, here it is To Be or Not To Be, Legally Speaking

I "featured" you, so you really have to read it and comment.

Bill Roberts

Lola- Great post. Thanks for writing it. You write so well. I look forward to your posts. That being said- maybe my family is not the norm anymore. I have 4 grown up Gen Y s. They are all very conservative. Two work with us in Real Estate. They are all artists and have a strong belief in protecting their work and intellectual property. They are very conservative in their views, sometimes more than me. They are not into all the gadgets. They are all very right brained except for one. My 2 daughters, 21 and 18 do tend to show a sense of entitlement but I think that is an age thing. I know most of the gen y kids at my church are all very conservative and do not believe in the free information thing as much as it being stated outside of this circle. None of them steal music except one and only a couple at church have done so. They are taught from a very early age that stealing is wrong no matter how it is justified. My son just bought his first house last year and he wanted it all to be very traditional.

If it does turn out to be the way people say, well, then I better get busy revamping my marketing program for the senior citizens. But then again, I will be kept rather busy with baby boomers until I retire. Katerina

I am a Boomer, but I am raising 3 y's. They don't talk on the phone everything is "text" with an ipod stuck in their ear.

This was an excellent review, Lola. Understanding how other generations think, process information adn so on is so important to better serving their real estate needs. There are too many folks ready and willing to do what need to be - we either get on the bandwagon or we stand to lose many opportunities...which we cannot afford to do in this market. Thanks for another well written and thoughtful piece.

Jeff

SEP

2007

Is it not great what you can learn from the youth? This is a great post and wake up call at the same time. I think that there is a lot to work with in this post for the real estate industry.

"The kid (of iPhone hacker fame) felt that his solution to the "problem" faced by many who were held "prisoners" to a proprietary system was ultimately the property of the world."

I really like this line. It is this kind of thinking that just might get us into deep space or even maybe save human kind . Sure it may seem risky or counter productive for business right now but if it can change business then it may not be so bad in the long run.

Information is king. I almost feel like I need to hire a few of these kids. :)

SEP

2007

We need to continually learn about changes in our industry. Doing this can help us make transitions with this generation.

SEP

2007

Hi Katerina, Thanks for your comment. There will definitely be a lot of Baby Boomers to serve although the Gen Y's are a larger generation. It is about choosing a market segment that one feels comfortable with, understanding their needs and behavior and then creating a great service plan!

Hi Vicky...Thanks for your comment. Yes, Gen Y's have a different view and way of life!

Hi Jeff, Thanks for stopping by to read and comment. Every generation is different, but I think the advances in technology have amplified the differences in a way that has not been experienced before. It is important to seek to understand...because through wisdom and knowledge, appropriate actions and decisions can be made. I appreciate your insights.

JAN

2008

Lola: Gen "X"er here. I really enjoyed the post (linked from Bill Roberts). I wouldn't worry about the kiddie hackers... they don't really care about hacking a MLS system (unless they're in the biz, they wouldn't have a clue what you're referring to!). The iPhone hacker was frustrated with Apple's determination to capitalize (monopolize) on technology that is available to the public. You'd see the same effect if a new computer was invented but could only be connected to the internet via 1 internet service provider. Unlikely, yes... but you get the idea. The internet has definitely changed the game... as real estate professionals, we will have to figure out the best way to keep the game within our reach. Thank you for the thoughts (and the comments everyone!).

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