The National Association of Realtors® released a survey called “Home Buyer and Seller Generational Trends” which compared the differences between younger buyers and baby boomers last summer. As the Spring buying season approaches, I thought it worth a look.
First, here are some stats:
Previous Living Arrangements (both): 65% moved from apartment/22% lived with parents
Moving Distance (both): Approximately 10 miles from previous residence.
Here’s the part that you really need to know about marketing to 59% of the home buying population:
90% use the internet to search for homes
They are more likely to find the home they ended up purchasing online
They are more likely to choose an agent based on a referral from family or friends
The average down payment was 5%
Gen X buyers plan to stay in their home 8 years
Gen Y buyers plant to stay in their home 5 years
Both are more likely to use “limited” real estate services
They are 59% more likely to use the same agent when it comes time to sell their home.
So, what does that mean to you?
Since 65% of the Gen X and Y homebuyers previously lived in apartment complexes, one of the best way to reel them in is by marketing to apartment complexes.
Since they rely on family and friends for referrals, go through your database and ask them to refer their children and family friends. The “title” could be: “Do you know of anyone between the ages of 28 and 39 years old?”
Since the average down payment is 5% (and therefore limited cash), suggest that they negotiate that the seller pay all or part of their closing costs.
Since they plan on staying in their homes from 5 to 8 years, set up your database to contact them at least 3 times a year for 8 years.
Since they predominately use the internet, make sure you are using all the marketing tools available — including videos, slide shows, social media posts and automatic email notifications when a new listing hits the market.
Oh and here’s the link if you’d like to read the entire articles posted by the NAR. Would you be interested in co-marketing to Gen X and Gen Y buyers who live in apartment complexes?