As a real estate agent, when you think about adults in their 50s, you might assume that they’ve long been settled down in a home they’ll own for their rest of their lives. This assumption, however, couldn’t be further from the truth. Younger baby boomers still play a crucial role in the real estate market, both as potential buyers and sellers. In fact, in 2011-2012, adult ages 48 to 57 comprised 18 percent of all home buyers and 21 percent of all home sellers , according to the NAR Generational Trend Report. That’s a huge subset of the housing market that you don’t want to miss out on. In order for real estate agents to increase clientele and further their career growth, it’s important to understand this crucial demographic of home buyers and sellers. Take a look at some of the trends among young baby boomers who are key players in the real estate market.
All facts and figures courtesy of the 2013 National Association of Realtors Home Buyer and Seller Generational Trends report. For more information about NAR, visit NAR.realtor.com .
Trends Among Young Boomers Buying Homes
They’re Financially Stable
Adults ages 48 to 57 are usually in the best financial position to buy a home. The median household income for young boomers buying a residence is $93,400 -- the highest average salary among all generational age groups. Furthermore, the median price that young boomers pay for a home is $200,000, 10 percent higher than the average for all buyers. Compare that to adults ages 32 and younger who pay, on average, $165,000, or adult ages 58 to 66 who pay $185,000. In short, real estate agents are likely to get a larger paycheck working with young boomers than they would working with millennials or older boomers.
They Understand the Process
Middle-aged adults know what to expect in the home-buying process. Fifty-three percent of young boomers owned another residence prior to buying a new one, while 38 percent rented an apartment or house, according to NAR. But not only are these buyers familiar with the real estate market, they also know exactly what they want in a home. In fact, young boomers are less likely to make compromises during their home search compared with younger generations. Real estate agents working with middle-aged adults, then, should be fully prepared to help them find a residence that meets all their needs.
They Go to Real Estate Agents First
While younger generations are more likely to put their faith in internet searches when buying a home, baby boomers look to real estate agents. In fact, adults age 48 to 57 are more likely than Generation X or millennials to contact a real estate agent before doing any other research. That’s to a real estate agent’s benefit. Additionally, according to NAR, 14 percent of boomers use an agent who previously helped them buy or sell a home, compared with 4 percent of adults ages 32 and younger who do the same. And when it comes to internet research, 96 percent of adults ages 47 and younger rely on it, while just 89 percent of young boomers use the web. Therefore, when targeting young boomers, real estate agents should not discount the value of traditional advertising, such as print, direct mail and yard signs, and also strive to offer excellent customer service in order to attract repeat clients. For adults in this generation, a real estate agent’s reputation is everything.
Trends Among Young Boomers Selling Homes
They’re Not Downsizing
While it might appear that middle-aged adults who have grown-up children would be downsizing their home, this is not the case. In fact, the median size for home sold versus home purchased among adults ages 48 to 57 was the same for each -- 2,200 sq ft. Furthermore, young boomers are often buying a home more expensive than the one they’re selling (an average difference of $14,000). Meanwhile, older boomers are often buying less expensive homes. So why is this important? Fifty percent of young boomers surveyed by NAR said they used the same agent for their home purchase as their home sale. By working with young boomers, you could easily double your commission. You may even be helping them find a larger, more expensive home the second time around. Ready to start targeting young baby boomers as your real estate clients? Keep these trends in mind and you’ll start increasing your revenue and building up your clientele in no time.