Before you Price and Sell Your Home, Consider Your Potential Audience
This is a great Post! I just re blogged it on facebook! I constantly tell my clients, before I price and sell your home, consider your potential audience. Great post!
Before you Price and Sell Your Home, Consider Your Potential Audience
A 2012 article in The Atlantic magazine referred to the Millennial Generation somewhat uncharitably as "The Cheapest Generation". While the authors could have chosen their words better, the point of the article was that Millennials aren't buying houses and automobiles, at least not to the extent that previous generations have.
A slow recovery from the meltdown and financial crisis of 2008 deserves a share of the blame for the caution among consumers in their twenties and thirties. But it's important to remember that those millennial consumers are our future homebuyers.
The article goes on to remind the reader that young buyers are cautious and they are searching for value in everything they buy. Slow job growth, high student loan debt and a lack of financial resources will do that to you.
The elephant in the room is the pile-up of homes (including lots of vacation homes) poised to hit the market in the next decade and beyond. Most of those homes are owned by Baby Boomers, looking for younger buyers to cash them out.
Boomers tend to be sellers, not buyers. That trend will accelerate as time goes on. Many Boomers are retiring now, while others are rapidly approaching retirement age.
Who will buy your vacation home? How much will they be willing (or able) to pay?
The potential audience for your vacation home is the Generation X and Millennial segment of our population. Demographically, their reduced earning power (compared to the Boomers) and their reluctance to pay as much as the Boomers paid for their homes presents an obstacle to Boomers' financial and real estate goals upon retirement.
Look for these factors to have a great deal of influence on prices during the next ten years, as the youngest "Baby Boomers" reach age sixty.
Contact Madeline Island Realty about Madeline Island and Twin Cities Real Estate
Call us for Information on Homes & Real Estate For Sale in Bayfield Wisconsin
Eric Kodner, CRS
Real Estate Broker in Wisconsin & Minnesota
Madeline Island Realty (La Pointe. Wisconsin)
Wayzata Lakes Realty (Minneapolis & Saint Paul, MN)
Our Listings Appear on NorthstarMLS in Wisconsin & Minnesota
Phone or Text Message 612.670.2539
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