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The real estate industry is experiencing gigantic changes in customer demographics. One major change pertains to the average age of today's buyers.
According to a recent report by the National Association of REALTORS, Gen X'ers and Y'ers are together the second biggest generational group, right on the heels of the Baby Boomers. The Joint Center for Housing Studies at Harvard University reports that the average homebuyer today is a Gen X'er. Baby Boomers, Gen X'ers and Gen Y'ers each approach a real estate transaction differently. That means learning to work effectively with each generation matters.
The most important housing characteristics for Baby Boomers are ease of home maintenance, easy access to quality wellness attention, and close proximity to cultural offerings. Statistics show that boomers place the most value on the "traditional" services provided by a real estate professional.
Generation X (1965-1976)
To earn the business of Gen X'ers, a real estate agent must present a compelling value package that's heavy on information and light on self-promotion and fanfare. They want a clear idea of the financial adjustment involved with buying a home and the true long term costs of homeownership. They want the information swiftly and without fluff.
Generation Y (1977-1994)
The Gen Y generation wants a balanced view of home ownership--both the pros and cons. Although they may need help with decisions, they'll charge full speed ahead once they've decided to buy. The agent's conversations about homeownership and the specific properties viewed must be sincere, direct and creative to make a favorable impression.
Gen Y'ers consider the Internet to be their primary tool when searching for homes. They view the agent as their source of advice for helping them make a proper choice and planning a purchase strategy.
In 2005, 40 percent of first time buyers were Gen X'ers and 39 percent were Gen Y'ers---eight out of every 10 home buyers.
