85 Million Strong & They Want Homes
Here’s a hot tip: While the rest of the real estate industry is distracted — lusting after millennials, ignoring Gen Xers and barely tolerating baby boomers – get to know the next big thing, Generation Z.
Gen Z is expected to count nearly 85 million members by 2020, making up almost 25 percent of the nation’s population, according to a study published by Fung Global Retail & Technology.
Known as “digital natives,” this generation is the first to be oblivious to “life without technologies and services such as smartphones, iPads, Facebook, Instagram,” according to the study.
If you’re an agent of a certain age, I have some scary news for you: your grandkids are about to enter the housing market.
What’s even more frightening is that, according to The Center for Generational Kinetics, members of Gen Z think millennials are “old.” Imagine what they think about their grandparents – the baby boomers.
If you’re a member of the latter, the good news is that your grandkid can be your laboratory when you decide to pursue this younger generation. The rest of the real estate industry has a steep learning curve ahead of them because members of Gen Z, although more like boomers than millennials, have little in common with any generation that came before.
To the so-called “super entrepreneurs of tomorrow,” business and making money are already top-of-mind, but don’t look for them to get there using the same, conventional methods.
Non-conformists, much like their grandparents’ generation, these digital natives are “a generation whose entire world and self-views are crafted by technology, immediacy and access,” Sherry Chris, president and CEO, Better Homes and Gardens Real Estate tells RISMedia’s Maria Patterson.
Although young, they seem to be learning from their predecessors, already socking away money for retirement. In fact, according to the Center for Generational Kinetics, nearly a quarter of Gen Zers had a savings account before they turned ten.
How will this group’s fiscal responsibility impact the real estate market?
It’s amazing the things scientists are able to measure. Attention spans, for instance. Apparently Gen Zers’ attention spans (eight seconds) are four seconds less than millennials’, according to Anna Fieler, executive vice president of marketing at POPSUGAR.
Remember, this is the demographic that dominates on Snapchat and Instagram (they claim Facebook is for “older people,” according to Andrea V. Brambila at Inman.com), so communicating with them means getting to the point almost immediately. They are practically attached to their smart phones, so texting will get you a lot further than an email.
“In fact, the rise of Gen Z should sound the alarm for all that a targeted Internet strategy is vital for reaching this cohort …,” warns Allen Shayanfekr, CEO and Founder of Sharestates.
While social proof is important to millennials, gen Zers won’t consult Yelp or Zillow reviews to find an agent. It’s their friends’ opinions they rely heavily on, so providing the kind of customer service that garners referrals will be more important than ever.
Gen Z represents a pool of very motivated real estate consumers. Start gearing up for them now and you’ll be a step ahead of your competition. Take advantage of our Mailing List Page Option 2 Demographic Search to create a targeted mailing list of Gen Z’s.
Need help creating your targeted list or anything else? Contact our marketing team at 866.405.3638. They’re incredibly knowledgeable, and ready to help get you suceed!
The Right Dialogue is the Key!
As we head into the holiday’s, now is the perfect time to sharpen your negotiating skills and polish your pricing techniques, the following are 3 powerful closing techniques to try. You know that old Floyd Wickman saying, “Worse than no listing is a listing that won’t sell.” Make sure yours are priced to move and you’ll not only be a hero to your sellers, you’ll set yourself up as the agent to call in your marketplace.
1. Don’t Help the Competition:
Overpricing your home in today’s market can actually help sell other listings. Explain to your seller to put themselves in the shoes of the buyer. They’ve got an agent and they’re looking at listings that are priced at market value, show well and have motivated sellers.
If they look at your home and a comparable home and all things being relatively equal, in other words, both are 4 bedroom, 3 bath, 2600 sq. ft. homes and both show well but yours is $50,000+ above market value, which home is going to look more attractive to them when it comes to a bottom line decision for their family?
In fact, when it comes to choosing their property, if your home is overpriced, you’ve just made the lesser priced home look perfect by comparison. They can feel good about their decision of getting the same sized home for less! You can also pull comparables from your MLS to show real world applications of this.
They’ve just priced themselves right off the internet search – eliminating the possibility of that 85+% of consumers who start their search there.
2. The Four Sales:
A great Floyd Wickman strategy is to use the following dialogue: You know we’ve covered the comparables – the research that I showed you with the prices of the other homes like yours that have sold recently in this area and I know you want to list it at the higher price. I’ve put a lot of thought into it, and you know if we went ahead and put it on the market at your price – and I was the only one that had to be sold on that price – well I guess that would be fine. But in reality, there are actually four sales that have to be made in order to sell your home at that price.
First…I have to be sold and I’ve gotta tell you – all I can go by is the CMA facts and figures that I showed you.
Secondly…the other agents have to be sold on showing your property at that price – otherwise they’re simply not going to show it to their buyers. Unfortunately, they get their numbers the same way I do – from what’s recently sold in the area and those same CMA numbers.
Thirdly…and this is a big one – the buyers. Let’s just pretend we sold the agents on it. Now we’ve got to convince the buyers to pay a higher price for a property when there are other homes like it that are selling
Unfortunately in today’s world and with the internet, buyers have access to the same information that we have here. They know what homes are going for in this area. So that’s going to be a tough sale, don’t you think?
Now let’s just say everything lines up and somehow we even sell a buyer on paying more for your property than we know its worth in this market. We still have one more sale.
Fourth…there’s the lender. Lenders use exactly the same formulas we do to determine Fair Market Value for a property before they’ll write a loan. Are you familiar with Fall-Throughs? Yeah, fall-throughs are what happens when people are thinking just the way you were thinking about pricing higher and the sale can’t go through because the property won’t appraise for what you’re asking for it. And that’s not what you want right?
3. Empathy vs. Reality Close:
This dialogue comes from our friend, Coach Gord Gerrie. I understand how you feel Mr. and Mrs. Seller and there is no doubt, many others have felt exactly the same way you do right now. However, what they found was that once they had sold their house and focused their attention on their new home, they understood that the reality of accepting the offered price really only amounted to a few dollars more per month on their next home.
Again in reality, by accepting this offer today, you will know that your house is sold and that the difference between what you had hoped for and what you will receive will amount to less than $X per day in your new home. Would you let $X per day stand between you and the home of your dreams?
As competition grows more fierce, you may find yourself asking, “What’s my next move?” Savvy sales professionals are negotiating the turn by investing in smart systems and tools that drive more business and help them compete long-term in today’s real estate arena. Who will take the lead in both listing and selling homes as we navigate this constantly shifting market? Those who stay strategically focused on one-to-one marketing, negotiating effectively up front, and committing to consistent business development through monthly prospecting.
1. Set Your Standards High: In any market, taking listings that just won’t sell is far worse than having no listings at all. While you may be tempted to take at any price, terms or commission to secure the listing, this is a recipe for failure. Consider instead, raising your standards using a strong, effective tool which spotlights the homeowner’s commitment to getting the home sold in the quickest possible time, with the best price and terms. We call it our Merchandising Review and there are three very successful ways to implement this valuable tool.
First: Make the right mutual decisions at the listing appointment. In all likelihood, throughout your
presentation your sellers will have an objection or two regarding terms such as price, commission, etc. Our suggestion is to agreeably shelve objection handling until AFTER you have obtained the signatures for the listing. Then close your appointment by going over the Merchandising Review to make certain everything is in order.
Sample dialogue: “I want to thank you for listing your home with me. Please know that I will do everything in my power to get it sold. To help me do just that, let me take a few minutes to go over our Merchandising Review. I use this the same way pilots use a pre-flight checklist. This list of 18 different seller-controlled factors actually will help generate a quicker sale for the best possible price and terms. What I need from you is a commitment to check off at least eight of these items. Let’s review.” Then simply walk them through the list and negotiate where necessary.
2. Get non-selling inventory back on track. Go through your inventory and red flag problem listings. Walk through the problems using the Merchandising Review and the Five Most Common Mistakes tools. Contact your sellers by phone or visit in person to help them understand those review items that are hindering the sale of their home.
Sample Dialogue: “Mr. and Mrs. Seller, we’ve had your property on the market for ____ days now and we are not getting the results that either of us had hoped for. We have a new tool called the Merchandising Review that helps us identify problem areas, and I’d like to sit down with you to discuss those issues. I believe if we walk through these items we can get your listing back on track and help exact a faster sale for your home. Would tomorrow at 6:00pm be good or would 8:30pm be better?”
3. Data mine for the niche that’s right for you. By targeting niche markets that are near and dear to your own interests, you’ll be better able to “speak their language” and let your passion for that market segment build the momentum you are looking for. For example, do you love listing and selling waterfront properties? Is boating the way you unwind? Now, it’s easy to find and market to like-minded people and work not only with your sphere — but consumer interest groups that most resonate with you. That way you are growing your book of business with the kind of folks you are most interested in working with. (And that just makes work, and life, a whole lot more interesting, don’t you think?)
Use Option 2 on our Mailing List page to search for the customer segments you most want to market to:
These market segments are just the tip of the iceberg. Find the niche that most works for you. Watch all three videos regarding the mailing options that are available to help agents find the perfect customers. From radial searches, to demographic searches to all new Nielsen Prizm Code data, the possibilities are endless.
Whatever strategy you deploy this season, make sure your message is clear and marketing consistent. Call, see or send something to everyone in your base of business at least every 30 days and you will find that your productivity, profitability, referrals and commissions will be on track all year round.
Need help? Call our marketing team today at 866.405.3638 to put the best systems in place to build your business easily, and cost-effectively.