Who do you target when you’re ready to sell?
Your Fix and Flip investment is likely to appeal to more than one generational demographic. With this in mind, knowing some of the criteria that appeal to each generation, may help you focus your sales strategy. The following information is based on the March 2016 National Association of Realtors, Home Buyer and Seller Generational Trends Report. The report breaks home buyers into 5 age groups.
Millennnials (GenY) – age range 18 – 35:
This group is typically searching for their first home in an up-an-coming urban area. What are the key items to promote if your property will appeal to this segment?
• This group represented the largest percent of home buyers at 35% of the market
• 67% of these home buyers are first time home buyers
• 64% are married couples (12% unmarried couples)
• 71% identified help with the buying process as the largest benefit provided by their agent
• 85% of buyers in this group purchased a previously owned home (more than any other group)
• 62% shared that a convenient commute was a top factor in their neighborhood choice
• 43% said that commuting costs were the most important environmental factor
Sales strategy: Offer help with the process, offer extra assistance with paperwork and such. Include interesting facts about the neighborhood and its proximity to current and future transit options.
GenX – age range 36-50:
This group is typically accommodating a growing family and is recognizing that education and family time are primary values in their lives.
• This group represents 26% of the home buying market
• This group has the highest incomes of all groups
• The most likely to have children – 69% have at least 1 child, with 30% having at least two children
• They buy the largest homes by square footage with the most bedrooms
• 40% of GenX buyers listed neighborhood school district quality as their top criteria
• GenX moved the shortest distance, purchasing an average of 7 miles from their prior residence
• GenX purchased the oldest home of any group – median year built 1986.
Sales strategy: Share information about the schools and the district in your area and emphasize the family friendly nature of community.
Younger Baby Boomers – age range 51-60:
This group may be interested in purchasing a second home in a vacation destination. In spite of looking to spend this money they are frugal and interested in investment value.
• This group represented 16% of home buyers
• This group is the most likely to buy a multi-generational home (MIL)
• 21% of late Boomers own a second home, with 13% sharing that they own investment properties
• 32% plan to live in the home they purchase for 16 years or more
• 19% compromised on the condition of the home they purchased – more than any other group
Sales strategy: Communicate the value of the features in your home and emphasize the long-term benefits of the rehab work.
Older Baby Boomers – age range 61-69:
This group tend to relocate to be nearer to certain amenities – beach, golf, retirement community, etc. and are often buying as part of their retirement. Typically, their children are gone and they are considering downsizing and possibly a townhome or condo.
• This group represented 15% of home buyers
• 56% are most concerned with the quality of the neighborhood and nearby amenities
• 42% shared that heating and cooling costs were very important features, with energy-efficient appliances and lighting also mentioned
• 38% emphasized affordability and 37% identified convenience to friends as very important
• This group purchased homes furthest away from their prior residence
Sales strategy: Highlight the downsize nature of your property and any upgrades to systems and appliances.
Silent and G.I. generations – age 70-90:
This group is downsizing to be closer to family and friends or looking for assisted living communities.
• This group represents 9% of home buyers
• This group has the lowest median household income
• 15% of home buyers 67 – 87 are looking for a smaller home
• 30% purchase in senior-related communities
• 76% of home buyers over 87 purchased a home 2000 square feet or smaller
• Buyers in this age were the most likely to pay less than the asking price
Sales strategy: If small, highlight the down size nature of your property and provide tips for getting the most out of the limited space. Also call-out any nearby medical and assisted living services.
• The highest percentage of single female home buyers was found in the 51 to 60 age group
• Sixty-three percent of all buyers had children living at home
• There was only a median of 14 miles between the homes that recent buyers purchased and the homes that they moved from
• Most recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity at 34 percent
• The most important website feature to buyers 35 years and younger, 36 to 50 years, and 61 to 69 years was photos at 88 percent, 90 percent, and 82 percent respectively.
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Veristone does not finance owner-occupied properties.