The Movers and Shakers: The Gen Y Home Buyers

By
Real Estate Broker/Owner with Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington 0788174

The Gen Yers or the Millennials, are the new catalyst in the housing market.  The dawning of this new era requires catering to the high tech and internet /cyber savvy demographic or segment.  Understanding their behavior and buying patterns is critical as realtors because they are and will be impacting the real estate market immensely.

The Shift. “By the end of the decade, the balance in the U.S. will flip from approximately 50% baby boomers and 25% Generation Y workers to 25% baby boomers and 50% Generation Y workers,” according to a CNN report Generation Y- Set to transform office life. Consequently and inevitably, they become the dominant players in the housing market because they have encapsulated most of the purchasing power.

 

Always on the Go and Mobile. Because of their technological savviness, they are equipped with sophisticated devices. They can’t live without smart phones and other mobile gadgets. They breathe and exhale in the cyber world. In dealing with Gen Y, your response time should be quick because their attention span is very short.  They easily recognize your reliability factor as you respond quickly to their questions and concerns through the medium of their choice (text, email or phone). “Gen Yers’ world was shaped by communication technology that some have used since they were as young as age five. Raised on 24/7 connectedness, they are accustomed to multi-tasking: juggling between e-mail on their notebooks and surfing online, and talking on their cell phones.” Here is a link to Metlife’s  Study on Gen Y Profile.

 

Realistic,Careful and Pragmatic. Although their tastes and preferences are diverse, they tend to make their decision based on what they can afford. Other factors become secondary. Their discreet buying decision is manifested due to the boon and bane of real estate market and the economic collapse.

 

Passive and Aggressive Behavior. Despite their arsenal of knowledge of the market, Gen-Yers still seek the expertise of the realtors in their buying process.  Even though they have done multitude of online research, they would not dismiss the value that realtors bring in the complex real estate transactions. This fact has also been a part of their homework.  Albeit reliance on the realtors for guidance and assistance, they are not hesitant to give clear and specific directions.

 

 Gen-Yers are Family-Centric.  They have a strong relationship and ties with their parents. So, getting the parents' approval is just as important as finding the home that fits their needs. Remember that parents look out for their children’s best interest. Hence, you and the parents have common goal.

 

 

Parents are not your Foes  Listen to what the parents say. If you encounter negative remarks about the house, don't negate or contradict. Give them your honest and genuine opinion based on other properties your clients' have seen and feed them the information on how the subject property fares or compares to other properties. You can't be defensive. If necessary, you can show them the other properties the children have seen. Let them feel that you are there to protect their children's interest as well. If you do this genuinely, it resonates. Not only do you get the Generation Y buyers’ approval. You also gain the parents' trust.

 

Capturing Gen Y’s Attention. Aside from the word of mouth which they value highly because of the small sphere of influence they keep, online presence is a must. A simple with clean lines design and real time and user-friendly website is of paramount importance. Gen Yers have little patience. Therefore, your website should capture their attention in less than a minute. Making them stay on your website is something you have to consider seriously. 

And by the way, don’t forget to reach out to them through the social media: Twitter, Facebook, Linked In, You Tube and Google +.  Mingle and Socialize. Don't be anti-social...media:).

 

Link to the Old Blog

Posted by

        Maria Gilda Racelis 

      "It is the ability to make a difference that differentiates me." 

         Serving Hartford, Tolland and Middlesex Counties

Phone: 860-995-9473

Email: mariagracelis@gmail.com

mariaracelis.com

 

 

 

 

 

 

Comments (16)

Anne M. Costello
Weidel Realtors - Yardley, PA

Maria: Wonderful post. My biggest question - what will happen to the 25% of Baby Boomers by tghe end of the decade? LOL Not sure if that stat refers to the workplace or overall. I, for one, am not planning on exiting the workforce or the planet that quickly. Happy New Year!

Dec 29, 2012 11:59 PM
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Maria - Excellent analysis. Adapting to a changing market is much more complex than just learning new technology. At the heart of what we do are people, and understanding their needs and psychology is a critical component to success in the market.

Featured in BananaTude!

'Tude!

Dec 30, 2012 12:22 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Fasinating post. No matter what changes have taken place with the different generation, I do not see change in the way I do my mortgage practice, I do many first time home buyers as you know and to the other end, doing reverse mortgages.

Let's make 2013 the best year ever!

Dec 30, 2012 01:24 AM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Maria very interesting post...and so right on.  Being up to speed with the younger generation has alwasy been important - but never more so as it is now.  

Dec 30, 2012 07:54 AM
Ed Silva
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Maria, keeping up with the technology changes is in itself a full time job, but necessary to stay on top of our business and to help the clients

Dec 30, 2012 08:56 AM
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
Maria...I think if an agent is not prepared for this change they should consider retirement
Dec 30, 2012 10:56 PM
David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

Maria Happy New Year to you and your family and a prosperous 2013 ~ Dave.

Dec 31, 2012 02:25 AM
Glenn Freezman
Family Abstract, Inc. - Horsham, PA

Maria, excellent post.  Dead on analysis.  Question... Why did they start with Y as the generational mark? Didn't anyone think about the fact that there is only one Generation left? Z

Dec 31, 2012 04:14 AM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

This is something that I need to know more about. I do not know that much about the Gen Y generation. I am a Baby Boomer...I will learn and love it.

Hope you have a very Happy New Year..

Jan 01, 2013 07:57 AM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Maria, a very good advice to many who run away from social media...

"don’t forget to reach out to them through the social media: Twitter, Facebook, Linked In, You Tube and Google +"

Jan 01, 2013 12:22 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years
Thanks for a helpful description of this important buyer group.
Jan 01, 2013 04:02 PM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Wow, Maria, this is a fabulous post.  Thanks so much for putting this together.  You're right, the mind set is different from this generation and we need to adapt.

Jan 01, 2013 07:58 PM
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Good Morning Everyone and Happy New Year!!! Thank you all for the wonderful comments. It is an excellent booster for the year 2013.

To answer Anne's question: Hi Anne. the theory is because GEN Y (born between 1974 to 1995; but experts have differing opinion on the Millenials birthdates--from early 1970 to the later part of 1990) will churn the market since they will dominate the work force. Hence, the big chunk of source of $$$ for disposal will be in their hands.

To Glenn: I am not sure how the name GEN Y came about just like the GEN X. Would the next be named GEN Z? I don't know either. Right now, we have the silent generation, the baby boomers, the GEN X and Y or the Millenials.

Hello Dick: I thank you so much for the feature in Bananatude. I wish you a prosperous New Year.

Hi Joe: Yes. Let us make 2013 the best. And all the years to come. Happy New Year.

Hi Anna: Thank you. They have the buying power. We should keep up with their needs and adopt the system that works for them. Happy New Year.

Hi Ed. You are correct. The tech is just part of our tools. We should not leave the personal touch behind. Happy New Year.

Hello Jeffrey: :). Change is calling.

Hi David; May you and your family have a wonderful new year as well. Thank you.

Hi Ginger: I am glad that you find this informative. Happy New Year.

Hello Erica: Congrats on your last GEN Y transaction. The parents will be around. For most GEN Y home buyers, this scenario will be common. Happy New Year.

Hi Praful: Indeed, social media becomes a medium for interaction. Happy New Year.

Hello Michelle; Thank you for the comment. Have a Happy New Year!!

Miss Debbie: What a pleasant sight this morning. Thank you for stopping by. Happy New Year.

 

 

Jan 01, 2013 09:07 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Maria, lets hope that 2013 shows the biggest real estate recovery ever recorded. . the scenario  is set. .

Jan 01, 2013 11:14 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

Maria: Indeed. Up here we're dealing with the Gen Y'ers who would prefer to rent. We're hopeful to change their mindset as it's pretty affordable to own right now. Thanks for the post!

Jan 02, 2013 01:55 AM