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.
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.
“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:
- More internet savvy than they’re given credit for
- 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.
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
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
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
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
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”
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