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You're Making Less If You're Not Thinking About Millennials and Gen X

You're Making Less If You're Not Thinking About Millennials and Gen X

by Bubba Mills

There's a lot of talk about generational differences in real estate consumers, but does it matter  for your real estate business?  Based on data about Generation X and Millennials, the answer is yes.

The "slacker" generation no more

Generation X, defined by NAR as those ages 37 to 51, are making the most money - a household income of $106,600 annually, according to NAR's Home Buyer and Seller Generational Trends Report 2017.  Compare that to younger Boomers aged 52 to 61 earning a household income of $93,800, and Millennials aged 36 and younger earning a household income of $82,000.00

    The report says Generation X makes up the largest generation of sellers at 29% and has the highest median priced homes of all buyers.

    Why else should you pay attention to Gen Xers?

  • They're the largest generation with children under 18 still living at home, so schools and roomier homes are on their radar.
  • Gen X sellers' have built enough equity to sell and trade up to a larger home.
  • The share of Gen X homebuyers grew to 28% of recent homebuyers.

Here are three ways to cater to Generation X

    Focus on single-family homes and schools.  Gen Xers still have kids, so convenience to schools carries weight.  And 87% of Gen X buyers purchased detached single-family homes.

    Find their family and friends.  Research shows that while younger buyers were more likely to need a larger home or move for job relocation, Gen Xers want to be closer to family or friends.

    Keep a sense of urgency.  Gen X sellers are most likely to have wated to sell their home earlier but waited because it was worth less than their mortgage.  Now that the market is stronger, emphasize the timeliness and the fact that interest rates are on the rise. 

Common myths about Millennials

The Pew Research Center reports that in 2016, there were an estimated 79.8 million Millennials in the United States - the largest living generation.  NAR's generational trends report says Millennials are the largest share of homebuyers, too, and 66% of them are first-timers.  Other stats - like the fact that 85% said in NAR's survey that owning a home was a good financial investment - lfy in the face of common misconceptions agents have about this generation.  Here are some Millennial mythes you may be familiar with.

    MYTH: They only wna to work with REALTORS online.  In a 2017 study from CentSai, a financial wellness website, 75% of Millennials surveyed said they prefer using a local real estate agent instead of an online agent.  Sepcifically, they said they liked the personal touch, lonstanding relationships, local knowldege, and reduced hassles.  The survey also found online real estate agents less popular than expected, despite adverstising cheaper overall cost via mobile apps.  Still, 91% of Millennials surveyed said they would use an online site or mobile app to research neighborhoods and home prices and to indentify houses that they might buy. 

    MYTH: They onlike to communicate via texting.  More Millennials view texting as just onmore way to communicate - not the only way.  For example, a survey by Bently University in Massachusetts found that more than halfo fo Millennials surveyed said speaking in person is preferable at the office, particularly when important information needed to be conveyed in a timely manner.

    MYTH: They prefer falshy websites.  Jakob Nielsen, a web-usability consultant, has studied millenial online preferences and found that while they're aesthetically discerning (just like all us), this generation typically appreciates stremlined, informative, user-friendly simplicity over the big and the bold.

Tips for working with any generation

Some aspects of your work will apply to everyone regardless of their age.  Here's what you need to provide quality service to every generation.

    Cultivate your online presence.  NAR's Home Buyer and Seller Generational Trends Report 2017 says the first step taken by buyers across nearly all generations for their home search was to look online for properties.  Revisit your website and make changes that will make it more practical and easy to use.

    Strengthen your referral networks.  Referrals by friends, neighbors, or relatives were higher amove Gen X and Millennials comparted to older generations.  Stay in touch with your clients and prospects.  You never know when the senior you helped downsize will refer you to her 31-year-old firstime homebuyer grandaughter.

    Use your experience to your advantage.  Emphasize your local knowledte, personal touch, and that you'll work with them as a team to reach their buying, selling, or leasing goals.

    Communicate how they want to.  Follow your prospects' and clients' lead on how to communicate with them and never assume they perfer one method to another. 

 

LEARN MORE ABOUT WORKING ACROSS GENERATIONS

Gain instight into working with different needs and lifestyles of four generations of real estate buyers, including Millennials and Generation X, from the Real Estate Buyer's Agent Council (REBAC) course Generation Buy.  Learn how to communicate across generations and get access to generation-specific marketing tools, networking tips, and more.  TAR is offering Generation Buy as an interactive broadcast course on October 31.  Register for TAR courses at app.texasrealestate.com/mr/education.

 

BUBBA MILLS is the CEO and owner of Corcoran Consulting and Coaching Inc. (corcorancoaching.com/programs, 800-957-8353), an international real estate, mortgage, and small-business coaching company committed to helping clients balance success in business while building baulue in life.  Mills is a nationally recognized inpirational and education speaker, coach, and mentor to the top real estate agents and morgage companies.  His articles do not necessarily represent the views or opinions of Corcoran Consulting and Coaching Inc., clients or other entities he represents.

 

Origianl article can be found at http://texasrealtor.epubxp.com/i/856531-aug-2017