Before we get into this, let's take a quick look at the current situation in the housing market. All indicators point to the fact that interest rates will be dropping further. This is going to lead to a rapid increase in refinancing for existing mortgages and, I believe, a significant increase in first-time home purchases as buyers that have been "riding the fence" finally feel that it is time to jump into the pool.
The kicker with the majority of these new buyers is that they are either younger GenXers or even GenYers.
What does this mean for you??
First, a little background for you. Did you know that NAR reports that the median age of an active agent of a Realtor is 52...Yet the median age of a first time home buyer is only 39? NAR also reports that in 2007, 39% of homes sold were first-time buyers. Out of that group, 89% of them were below age 45. 68% of them were under the age of 35!!
So, what does this mean for you (I ask again)?
It means that a good portion of the agents in this business have to get with the program if you want to be the one working with these new buyers! And, by "get with the program", I mean use your strengths to your advantage as well as re-inventing yourself to "keep up" with your clients!
Here is a short list of tips that will help you work more successfully with younger buyers that I came across in a recent issue of BrokerAgentPro:
- Educate your clients! Don't be afraid to resist the temptation to just jump up and start showing property to your new customers right away. Slow down a bit and get to know your clients. Trust me, coming from a Gen Xer, they are tentative about the way the market and the news has portrayed things anyway. So, the last thing they will want is to feel like they are being pushed into buying right away. Take the time to educate your new clients on the basics of buying a home. Explain to them the importance of ownership versus renting and the advantages that ownership can bring to them in the long run. Work to eliminate this anxiety and develop a level of trust. This will also force you to learn their little quirks and ticks. (Example: They are far more casual. So, don't wear a 3 piece suit when Dockers and a polo shirt will work. In a world where they can get information instantly, it would be a good idea to pull the "fluff" out of your pitch and stick to facts and figures that directly relate to them.) These things will work to your advantage every time.
- Get them Pre-Qualified! Now-a-days, this is almost a "No-Brainer". But, doing this saves a lot of time...both for you and for the clients. (There is really no point in showing a ton of homes to people that can not afford the homes you are showing.) Going through a pre-qualification process will show the new buyers what they can afford financially and exactly where they are sitting. This will help eliminate the anxiety of purchasing a home also because it will show them exactly what they can or can not afford. Again, flexing your educational clout, make sure you explain to them they will see more scrutiny than in times past simply due to the way the credit market has gone.
- Get web savvy! This point has been beaten into just about everyone's head over the course of the last year or two...and I really don't want to re-hash all of the points that everyone has agreed are so important to marketing to this generation's buyers. But, it is important to remember that these buyers grew up with the internet. They use it constantly to do everything from banking, searching, reading the news, all the way down to ordering pizza and hot wings for the big game. Chances are they have already been online searching for property and probably checking up on you before they ever made a decision to speak with you. They like to talk on the phone, but not necessarily person to person. The majority of them prefer to use their phone for texting. They want what they want and they want it immediately because they live in a world that allows for that to happen. Become part of that world. I know a lot of agents out there that are resistant to this change. I've said it before...you can either adapt to the changes and overcome...or you will get run down by those that do!
Focus on the American Dream! NAR reports that younger buyers buy mainly because they WANT to own a home. (DUH!!) 74% of younger buyers state that this is the main reason for their purchase. So, appeal to that want...that need. Use that to your advantage when speaking with them to help encourage them to stop sitting on the fence.
Change is the only constant in the universe. And, those that are resistant to that change usually end up on the shelf...just like the books that have been replaced with laptops and blackberries. If you want to remain relevant in this industry and in this environment, you have to be willing to accept the changes required to allow you to move forward. Otherwise, you will become irrelevant...like my dictionary.
Contact me for information about Real Estate Client Referrals! You can reach me at 800-977-7058 or online at www.twitter.com/recr.
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Good no great advise Clint. Sat in on a meeting yesterday where agents almost sounded like they were bragging that they don't know what social networking means or blogging or Twitter. You and I both know that they will be history in the real estate market and very shortly. These are the same agents that feel that information should be protected and NOT given out freely. Your stats are correct about how we as agents are older than our clients but I for one hear often from my 1st time home buyers that they want my input and my experience behind them when they buy.