Ride the “Silver Tsunami” of Baby Boomers

Jun 24, 2020

COVID-19 has changed much of what used to be considered “normal life.” In cities that have relaxed restrictions, dining out may involve having your temperature taken at the door. Shopping may require that you wear a mask and follow arrows pasted on the floor, directing traffic.

The future is at the top of many minds. Even if the world recovers from this pandemic, and gets back to normal (or something close to it), the lessons we’ve learned will be forever ingrained in our consciousness.

Home, family, taking care of our health – have all become even more important.

While the real estate market appears to be very much like it was before the pandemic’s outbreak, with low interest rates luring buyers into the market and home values holding steady, attitudes of real estate consumers have changed.

We are told to expect an exodus from the cities to the ‘burbs and perhaps even rural areas. The downsizing craze is over, we’re told, and homebuyers want more square footage. Outdoor spaces and specialty rooms (office, gym, etc.) are on the lists of those buyers who can demand them.

Most of all, many Americans who were isolated by distance from family during the lockdown, crave closeness.

*Life Event Series, Changing Needs* postcard

Especially older Americans and most especially those who live alone.

While one of the primary reasons baby boomers sell their homes is so that they can move closer to their adult children or friends (23.5% according to the NAR), we think the social distancing we’ve endured will see many, many more choosing this option.

Boomers in the real estate market

Older homeowners naturally have more equity in their homes, according to NAR’s 2020 Generational Trends report. The average equity earned of sellers age 22 to 54 is nearly $45,000. Baby boomer sellers, on the other hand, have, on average, $74,300 in equity.

The homes they will sell have at least three bedrooms and 2 bathrooms (many, however, boast three bathrooms). While on the market, boomer homes experienced far fewer price reductions than the homes of younger sellers.

More than one-fourth of younger boomers have lived in their homes for 21 years or longer, while 35% of older boomers can say the same.

Younger boomers who purchased another home after selling their current home chose a slightly smaller home, while older boomers, on average, chose slightly larger homes.

Finally, baby boomers make up nearly half (46%) of the seller’s market.

How to reach this group of home sellers

Boomers love YouTube. But, before you race out to create real estate videos for this demographic you need to understand that they probably won’t watch them.

Their use of YouTube is as a sort of TV-on-demand platform. According to data from Think with Google, the most-watched categories by boomers include “… entertainment, music, and news.”

The best way to reach this cohort and engage with them is on Facebook. Pursuing organic reach, however, may be futile, according to BigCommerce.com.

*Life Event Series, New Memories* postcard

“With organic Facebook reach hovering somewhere between two and four percent, many brands struggle to gain impressions and engagement on the platform,” according to the site’s Ethan Giffen.

The solution, he says, is Facebook ads. Yes, they cost money. But it’s one very effective way to reach the group that has a higher net worth, is most likely to want to move and sells more homes than any other.

OK, so maybe Facebook ads are a bit pricey for your budget right now. Consider direct mail as a budget-friendly, highly effective alternative.

This is a generation who grew up with mail as a major form of communication to friends and family. They still enjoy receiving mail and are more likely to read what they receive than the younger generations.

But you need the right message

To send the right message requires that you know your audience. Earlier we gave you a bit of insight into their real estate habits. But to effectively market to the group requires digging deeper. Baby boomers, by and large are:

Active
More internet savvy than they’re given credit for
Independent
Not “old”

In fact, dump the word “senior” when referring to this group. Use “baby boomer” or “older American” if you must. While not all are offended by the term “senior citizen,” many are.

Overall, they value useful information. This might include local market activity, a CMA, news on mortgage rates and helpful home maintenance tips.

Get to know baby boomers’ interests by visiting aarp.org, nextavenue.org, and everythingzoomer.com.

*Life Event Series, Time For Play* postcard

Send the Time For Play postcard from the Life Event Series to your Baby Boomer Prospect List.

Need help targeting this specific niche of sellers? Use our Demographic Search Tool to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!

PLUS: When you have time…here are some Free resources we’ve made available to support your success.

1. The Free Real Estate Mailing List Guide

This image has an empty alt attribute; its file name is Real-Estate-Mailing-List-Guide2-3-D-999x1024.jpg

The Real Estate Mailing List Guide outlines the top tools for generating targeted prospecting lists including Baby Boomers, Empty Nesters, Investors, Lifestyle Interests, High-Income Renters, Move-Up Markets, and more. The Guide also defines done-for-you marketing campaigns to match these markets. –Click Here

2. The 12 Month Done-For-You Strategic Marketing Plan

This image has an empty alt attribute; its file name is 2020-Planner-3D-999x1024.jpg

The Real Estate Marketing Planner is a powerful 12-Month-Guide that strategically defines what marketing to do when. Four key market segments are included, Niche Marketing, Get More Listings, Geographic Farming, and Sphere of Influence. –Click Here

3. The Free One-Page Real Estate Business Plan

This image has an empty alt attribute; its file name is Business-Plan-3D-Book-New1-270x300.png

Treat your business like a business it is vital to long-term success in this industry. Some agents may put together elaborate business plans, yet there’s something powerful about keeping it simple. Check out our one page Online Real Estate Business Plan. – Click Here

4. Become a Listing Legend Free eBook

Ready to take a vertical leap in your real estate career? If you’re looking for inspiration…and the tools and methods to dominate a market and go to the top in real estate…you’ll find them in this free book. – Click Here

5. The Free Online ROI Calculator

This image has an empty alt attribute; its file name is ROI-calculator-b-233x300.jpg

Consistency and automation are the keys to success. Discover how effective direct mail marketing can dramatically increase your bottom line. Enter your statistics in our Free online ROI Calculator and click the ‘CALCULATE MY ROI’ button to see your results instantly! –Click Here

6. The Real Estate Marketing Guide “CRUSH IT”

This image has an empty alt attribute; its file name is CRUSH-IT-Guide-3-d-298x300.jpg

The “Crush It” Guide includes easy steps to launching an effective direct mail marketing campaign, how to create a targeted prospect list, the perfect way to layout marketing materials for success, seven opportunities available to target in your area right now. –Click Here

Downsizing: How to help your older real estate clients

May 20, 2019

Get a head start on this booming market

Statistics suggest that soon we’ll start seeing more older clients, looking to downsize.

A Trulia study published late last summer found that, in recent years, boomers weren’t downsizing mainly because of a “lack of affordable options” and “a shortage in starter home inventory,” according to HousingWire.com’s Jessica Guerin.

The market, however, is changing, presenting what just may be perfect conditions for what is being called the “Silver Tsunami.”

In fact, in early May, Housing Wire published “The 55+ housing market is booming,” and an article about “builder confidence in this sector” reaching an all-time high.

This year, the youngest baby boomers turn 55 and the oldest in the cohort will celebrate their 73^rd birthday.

If you want to work with boomers, understand them

It’s a great-big generation with a 20-year spread between the youngest and the oldest. Mention Rod Stewart or McFadden & Whitehead to younger boomers and they’ll flash back to platform shoes and balls of mirrors.

That’s stuff that is foreign to older boomers. To them, the only music worth listening to came from Bobby Darin, Frankie Avalon and, of course, Elvis.

Then, there are those in the middle of the generation who grooved to the sounds of the Beach Boys, Beatles, Sam Cooke and the Supremes.

There’s also a difference in how they view home ownership. The rate for Americans between the ages of 62 and 67 is three times that of those younger, age 56 to 61, according to a Fannie Mae study, citing U.S. Census Bureau statistics.

Get to know this generation and you’ll not only have a better feel for how to market to them, but how to assist them when it’s time to sell the family home for something smaller.

Helping them choose their next home

Emptying their home—divvying up decades of belongings to children and friends—is a lot to think about. In fact, many older home buyers are so focused on the move that they pay far too little attention to the choice of the new home.

Even if they’re on the younger end of the boomer generation, they’ll need to consider the future and how the home and the location will fit their needs 10 to 20 years from now.

That’s where you come in. Now is not the time to be Mr. or Ms. Super Agreeable. If you think they’re not considering what they should be, say something.

For instance, if their preferred location is 50 miles from the nearest hospital or urgent care facility, speak up. Though their health may be fine right now, the chances are good that it won’t be as they age.

If they’re insisting on a multi-story home, do everything you can to dissuade them. Stairs are brutal on old knees and muscles. And, since we start losing our sense of balance as we age, stairs can also present a terrifying danger.

Some of the things you, as their agent, should look for when showing them homes include:

At least one exterior entry to the home should have no steps.
Doorways that are wide enough to accommodate a wheel chair (at least 32 inches), or the ability to widen them.
Wide hallways. The National Association of Home builders suggests that, to age in place, the home’s hallways should be a minimum of 36 inches wide.
Lots of windows for natural light.

Sure, there are lots of other things to consider and your clients may need to make changes in the years after moving in.

Empathize as they empty the nest

Baby boomers own and occupy 32 million homes. The previously-mentioned Fannie Mae study hints that your most likely downsizing client will be between the ages of 65 and 85. Again, this is a huge, diverse group of people.

Many, however, will be leaving the home in which they raised their families; a home that is full of memories. The decision to do so must be gut-wrenching for them. Empathy will go a long way when working with these sellers.

Remember the advantages the move presents:

They’ll spend less on home maintenance
They’ll spend less on heating and cooling the new home
They may end up with a smaller property tax bill, less expensive insurance and lower mortgage payments.

These are the money-saving and therefore exciting aspects of downsizing that should be reiterated as often as possible to keep the seller looking forward.

Help make it easier on them

Remind your downsizing clients that “Rome wasn’t built in a day.” If they’re having trouble sorting through belongings, suggest that they tackle one room at a time. Even one part of a room, such as the closet, will speed up the job.

Another variation of the “eat-the-elephant-one-bite-at-a-time” theme would be to suggest that they start with paperwork or their collections (books, photos, vacation tchotchkes). If it’s still too overwhelming, point them at the kitchen or bathroom.

These rooms rarely hold items of sentimental value and they’ll feel as if they’re accomplishing something when they successfully finish.

Check in with them by phone frequently to find out how they’re getting along and to offer encouragement.

Specializing in helping older homeowners downsize is the real estate niche of the future. Jump in now to get a head start on the competition.

Let your downsizing clients know you’re ready to help (available in the postcard section under the Life Event Series)

Send at least 100 Too Much House postcards from the Life Event Series to an area where you want more listings.

You might also like:

Direct Mail Real Estate Marketing Trends for 2019

A Refresher Course in Attracting New Clients

Need help targeting the perfect niche of buyers or sellers? Use our mailing list tool to create the ideal list (it’s easy) or call our support team for assistance at 866.405.3638!

PLUS: When you have time…here are Free killer tools to help your success this year!

1. Become a Listing Legend Free eBook

2. “Get More Listings” Free Online Webinar

“Get MORE Listings & Begin to Dominate Your Market!” Free online webinar. Learn the 3-7-27 strategy for explosive growth, why 95% of agents have less than 20% market share, and how to become the agent everyone competes against. – Click Here

3. The 12 Month Done-For-You Strategic Marketing Plan

4. The Free One-Page Real Estate Business Plan

5. The Free Online ROI Calculator