There is a New Marshall in Town
Last week I proposed that twenty to forty year olds hold the key to this region's future. Their use of home ownership as a fundamental strategy to building personal wealth ignites our market. Whether first, second or third time home owners, this group is the engine of growth. When they feel confident in their future, investment in a capital gain free house is seen as a "no brainer" step to making progress on life goals.
It starts with first time buyers. First time buyers displace experienced home owners and force them to trade up in the same community or out to an acreage. As more people gravitate to the region seeking employment, space in rental properties goes at a premium. Soon, those with the ability to service a mortgage, and the wherewithal to pull together the necessary down payment, start to look at the alternative, home ownership.
However, the majority of this demographic want what they just left; their parents' home. It is hard for them to adjust to what they see as a lower standard of living. That is one reason, new condos sell so well; it is just that, new. Who has the skill, time, or inclination, to invest in a "fixer-upper"? It's about lifestyle, including a Tim's on the way to work, a pathway to bicycle on, and walking distance from a club.
Pretty soon the babies start to arrive, thus a different priority emerges; the desire for a yard and more space in the house. Dad has by now accumulated some toys; quad, boat, and let's not forget that staple of the family room, the large screen TV. Mom wants her own bathroom, and a bigger kitchen / dining area. The search for a three bedroom main level home with ensuite off the master, fully developed basement, double attached garage and fenced back yard starts.
By this stage, the buyer has learned a few lessons about home ownership. They conduct an extraordinary amount of research on line, because that is how they gather information. Their parents may telephone or make an appointment in this "hunter / gatherer" stage, but not these guys. Since elementary school they have been trained to be self-sufficient. If the data they need is not available when they want it, they simply move on to a source that provides it.
This is one of the reasons that Internet search engines like Google and YouTube have become such important tools, whether it is trucks, holidays, or houses. Unfortunately, most real estate practitioners have been slow to recognize the trend. This generation wants better information on potential housing and amenities of the surrounding neighbourhood, but their needs are going largely unmet. This will change, and rather rapidly I believe.
If I have one piece of advice to those who wish to sell their home to this demographic, it would be to start thinking like the buyer, and not the seller. What does "your" buyer need in order to make the decision to move to the next step? It is not simply putting a sign up on the front lawn, or throwing some pictures on Kijiji; it is a commitment to providing a complete package of information that will allow them to make a judgment on whether your home will meet their needs. If it doesn't, they will simply move on, and an opportunity to engage with a prospective buyer has been lost.
Vern McClelland is an associate broker with RE/MAX of Lloydminster and a partner with The Midwest Group. If you have questions or comments on this article or other real estate matters, he can be reached at 780.808.2700 or through the website www.wesellmidwest.ca
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