Using Generational Preferences in Your Property Marketing Mix

Using Generational Preferences in Your Property Marketing Mix

RECBL - Real Estate News

The following information is provided by the Center for REALTOR(R) Development (CRD). It probably comes as no surprise to you that communication preferences vary considerably across generations. This is largely a result of what communication method each generation grew up with and got used to. Understanding these differences can offer insights into working better with cross-generational colleagues or clients. While there can be wide variation within generational groupings, and we shouldn’t fall into the trap of believing in rigid stereotypes, there is, however, enough of a pattern to generate some useful guidelines:

The Silent Generation, those born between years 1900 and 1945, are typically disengaged from technology. Their signature product is the automobile; for communication, they prefer face-to-face, letters and memos.

Baby boomers are those born between the years 1946 and 1964. Their signature generational product is the television. They are less formal in their communication than the Silent Generation, but still prefer doing business in person or via conversation on their cell phones.

Generation X, those born between 1965 and 1976, grew up during the advent of the personal computer. Their preferred mode and style of communication is direct and immediate; therefore, they will typically appreciate emails over phone calls and in-person meetings.

Millennials are complete digital natives for whom the signature product is the smartphone. They tend to prefer digital and informal methods of communication such as text, Twitter or Instagram. If something is important, though, they will appreciate an email or a voicemail that they can review later.

With these preferences in mind, when you are planning a property listing and marketing strategy for a seller, you will want to take into account the market economics (Is it a buyer’s or a seller’s market?) that the property is in-and the geographic and demographic realities of the area (What kind of buyers do you want or will you be able to attract?).

According to NARs Profile of Home Buyers and Sellers, for all of the generational groups described above, online search and real estate agents consistently ranked No. 1 and No. 2 as their most-used methods of finding a property. Furthermore, mobile apps, online video sites, yard signs, and open houses come in at the No. 3 through No. 6 spots for all the groups (but in a different order of preference for each). Other methods that don’t rank as high as these, but which can be reliable under the right circumstances, include: print newspaper ads, home builders and printed "home books."

Based on this research, it’s safe to assume that technological and non-technological methods for finding and selling properties are being used in a blended, overlapping, or complementary way. The key when you are serving seller clients is to devise a marketing strategy for the property that has the right mix of marketing activities so that you minimize wasteful activities and maximize effective ones. You’ll need a different marketing toolkit for different homes and different markets and different circumstances.

Below is a comprehensive list of the marketing activities you may have at your disposal. The specific ones you choose to use, the way you (re)combine them, and the relative emphasis or resources you devote to each will have an impact on your success marketing the property within its particular market:

In many ways, coming up with a marketing plan is an act of creativity based on practical experience, much like creating a recipe of your own or building something without instructions. The more skilled you are, the more you will "just know" how.

Even if you already have a good feel for what might work, there is tremendous value to documenting and tracking your efforts over the long term, even down to the property level. In the same way that you should be tracking ROI (return on investment) for your own business prospecting (client acquisition) activities, you should also have an established process for tracking ROI for each of the different tools in your property marketing toolkit. By tracking ROI for each of the different tools in your property marketing toolkit you gain clarity and visibility, when and why you have success, so you can add this information to your base of experience.

There is nothing better than putting information and actions to paper so that you can see patterns emerge and see something that you didn’t even realize was there. All of this can help inform and add precision and cost-effectiveness to future marketing planning.

To learn much more about generational preferences within property marketing plans, tracking ROI for your success with seller clients and their properties, and seller representation overall-please consider checking out the education, benefits, and resources offered by REBI and its SRS Designation. In October, the featured 25% OFF course at the Center for REALTOR(R) Development is the Seller Representative Specialist (SRS) Designation course, which is the core requirement toward obtaining this credential.

For more information, please visit the online learning portal from NAR's Center for REALTOR(R) Development (CRD) and the Learning Library. Here, real estate professionals can sign up for online professional development courses, industry designations, certifications, CE credits, Code of Ethics programs and more. NAR's CRD also offers monthly specials and important education updates.

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Effective Ways to Communicate With Each Generation of Homebuyers

Effective Ways to Communicate With Each Generation of Homebuyers

RECBL - Real Estate News

It isn’t all about phone calls anymore-and we promise: knocking on strangers doors isn’t the status quo, either. Your clients prefer to be communicated in a variety of different ways, often depending on the generational attributes that distinguish us all.

It’s hard to bridge the gap between baby boomers and millennials. The time has come where the real estate industry has begun to embrace the new and largest generation of homebuyers.

Because of this, we thought we’d create a quick cheat sheet so you can better connect with your ever-growing and evolving sphere.

Traditionalist - Born Before 1945
Traditionalists, or Maturists, are now well past the normal retirement age. They shy away from technology and put a high importance on safety, security, and capital preservation. Why? They grew up in the shadow of troubling times, namely the Great Depression and World War II. Communicate with them through print and face-to-face.

Baby Boomers - 1946-1960
Generally, since this gen adapted to online communication technology later in their lives, baby boomers prefer to talk face-to-face or on the phone. They were influenced by rock music and the Cold War, and all of them probably remember exactly where they were when Neil Armstrong took his first step on the moon. The best thing you could do is pick up the phone and call them.

Gen X - 1961-1980
This gen is a bit more technologically advanced and receptive to new innovations than the baby boomers are. They’re sandwiched between two much larger generations and often are raising kids while taking care of their now elderly parents. They embrace new communication channels like email and Facebook; in fact, emailing is favored and the easiest way to get in touch with them without interrupting their day.

Millennials - 1981-1995
At 75.4 million, millennials are now the largest generation yet, which means the largest generation of homebuyers. This crew grew up with technology at their fingertips. In their childhood, they saw cell phones surface, and in their young adulthood were using laptops and tablets every single day. Online communication became a thing in all aspects of their lives: family and friends, romantic relationships and work. They’ve not only been heavy users of social media; they created it. They prefer real-time conversations on platforms like WhatsApp, Instagram, Snapchat, Skype, or simply iMessage, which is why they expect answers to questions almost instantly. If they don’t pick up when you call, try sending them a text. Chances are they won’t listen to the voicemail you left anyways.

This might all seem overwhelming or annoying (or both), but creating clear lines of when to use which communication styles for your sphere will mean more bang for your buck (and time). After all, there’s a fine line between helpful and bothersome. You don’t want to rub people the wrong way. A set of communication guidelines will help you settle into the role as a clients trusted advisor quicker than ever before.

For more information, please visit www.moxiworks.com.

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Millennial Home-Buying Standards: Gen Z Is Next

Millennial Home-Buying Standards:  Gen Z Is Next

RECBL - Real Estate News

The home-buying approach varies from generation to generation-and in order to overcome down payment hurdles, millennial buyers are transforming the standards of homeownership set by baby boomers, according to the 2017 Zillow Group Report.

In fact, less than half (39 percent) of millennials submit offers with the recommended 20 percent down payment. Twenty-one percent put down the minimum: 5 percent or less.

The financial challenges don’t stop at down payments. Thirty-three percent of millennial buyers report having difficulty qualifying for a loan, and 43 percent have trouble finding out what they can afford. These complications likely stem from a lack of experience, as 71 percent of millennial buyers are purchasing their first home.

"In many cities across the U.S., the housing market is extremely competitive, especially for first-time buyers who are looking to purchase a starter home," says Zillow Chief Economist Dr. Svenja Gudell. "Young buyers often start their careers in fast-growing cities in which the market is particularly tough-and they’re trying to save for a down payment while making record-high rent payments."

Most millennials are not confident in their buying power. Sixty-two percent simultaneously search for rentals as a back-up in case of challenges in their home search, such as finding suitable properties in their price range or within their required time frame.

Millennials will, however, look for creative ways to achieve the home-buying dream. Twenty-nine percent of millennial buyers ask friends or family for down payment help, often coming up with the full amount using various sources.

Millennials will also jump on the opportunity to claim a home. They do not shy away from multiple offer situations, and are not afraid to go over budget. More than 53 percent of first-time millennial buyers make multiple offers on the homes they want, and 37 percent don’t keep to their financial plan. This can prevent future plans to sell if market conditions don’t allow the sale of the home to cover remaining mortgage balances. The typical homeowner still owes 62 percent of their homes value and 46 percent of millennial sellers won’t sell their home in their desired price range.

The economic landscape may or may not change for the next generation, but they will likely tackle these financial challenges in their own way, the report shows. Generation Z is just now starting to enter the housing market as renters.

"It’s encouraging to see that Generation Z is inheriting the same notion of what home means as their parents and millennial siblings," says Jeremy Wacksman, chief marketing officer at Zillow Group. "These tech-savvy yet risk-averse renters are bringing their social personalities home, desiring communal amenities geared toward bringing people together."

While Generation Z buyers embrace homeownership as fundamental to achieving the American Dream, high rent prices may stand in the way when it comes time for them to buy. Thirty-seven percent of renters who didn’t move in the past year state that lack of affordability is the main reason for staying put.

Since 47 percent of Generation Z identifies as non-white, it is the most racially and ethnically diverse generation in U.S. history, the report shows. This may bring to light challenges facing minority buyers today. Thirty-seven percent of African American/black buyers, 33 percent of Asian/Pacific Islander buyers and 25 percent of Hispanic/Latino buyers indicate they are dissatisfied with the home-buying process. This is due mainly to higher denial rates for minority buyers on pre-approvals and mortgages.

The millennial generation is redefining the way homeownership is approached, and Generation Z will have its own impact on the housing market in a few years, the report shows-especially since they will likely outnumber millennials by nearly 1 million people by 2020.

"As they mature and look toward homeownership, it will be interesting to see how their aspirations and preferences will shape the housing market," says Wacksman.

For more information, please visit www.zillow.com.​

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Millennial Homebuyers? Biggest generation in U.S. History

Millennial Homebuyers? Biggest generation in U.S. History

RECBL - Real Estate News

Millennials are the biggest generation in U.S. history, even surpassing baby boomers in numbers. Already, they make up 34 percent of all homebuyers-and as they get older, make more money and start families, that figure will grow. In fact, Census Bureau data projects household formation will average about 1.5 million per year through 2020. To attract millennial homebuyers to do business with you, it’s important to understand three things: how millennials look for homes, what they want in their homes, and what they want to see on real estate websites.

How Do Millennials Find Homes?
The millennial home search begins online. According to the National Association of REALTORS(R) (NAR), some 93 percent of millennial homebuyers "frequently" use the internet when searching for homes. More than half of millennial homebuyers find the home they ultimately purchase online. NAR also reports:

• 99 percent of millennial homebuyers use online websites to look for homes;

• 86 percent of millennial homebuyers use a mobile website or app in their search process; and

• 58 percent of millennial homebuyers find their home through mobile search.

In short, get the attention of millennial homebuyers with an appealing website that’s equally attractive on desktop and mobile devices.

What Do Millennials Want in a Home?
Millennials want different things than their parents or older siblings want from a home. Here’s what a recent survey found:

Technology: New appliances are the single most important feature millennials look for in a home, cited by 75 percent of respondents. Almost half (47 percent) want solar panels or other energy-storage features, while 38 percent want smart home systems.

Space: Millennials don’t need the biggest lot on the block (less than one-fourth want one acre-plus properties); however, they do like plenty of space inside the home. Sixty-two percent want a big master bedroom, 54 percent want a two-car garage, and 41 percent want a finished basement.

Luxury: Luxury outdoor upgrades such as outdoor Jacuzzis or three-car garages aren’t high on millennials priority lists; however, almost half want a luxury kitchen and hardwood or stone flooring.

It’s important to include all details in your listings, but focus first on those that matter most to millennials. Highlighting key features in your listings and using them as keywords on your website will boost your SEO.

What Do Millennials Want to See on Real Estate Websites?
Driving millennial homebuyers to your real estate website is only the first step. You’ve also got to make sure your website contains the content they look for when searching for a home. A whopping 91 percent of millennials surveyed by NAR say photos are the most important feature on a real estate website. Accordingly, make sure your website has plenty of appealing photos of available homes from all possible angles (the more, the better).

Almost as important as photos is detailed property information, cited by 88 percent of millennials. Accordingly, your real estate website must be regularly updated with property data. Once a day is OK, once an hour is better-but having this content update in real-time is ideal.

Finally, neighborhood information is important to nearly half of millennial homebuyers. Creating landing pages for every city, county and neighborhood in your MLS can address this need, as long as the landing pages are filled with market statistics, images of the local area, and local school information. Again-having this content automatically update is key to prospect engagement.

Home, Sweet Home
Taking the time to understand what millennial homebuyers want from a home and how they search for homes can pay off big in attracting millennial home buying prospects, but how can you capitalize on this information? TORCHx is a great option-their best-in-class websites are designed to attract this group through mobile and SEO-optimized property pages that automatically update with content millennials look for.

​Jesse Friedman co-founded TORCHx in 2013 and has built the premium digital marketing platform into a leading solution for real estate brokers and agents. Friedman is a serial entrepreneur with a strong history in real estate marketing and advertising.

To learn more about TORCHx, please visit torchx.com or request a free demo of the platform.

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How to Attract Millennial Homebuyers

How to Attract Millennial Homebuyers

RECBL - Real Estate News

Millennials are getting the brunt of the blame for killing many industries that were supported by previous generations but, as it turns out, the real estate industry is alive and well.

Understanding what millennials are looking for in a potential home is imperative if you want to succeed as a real estate professional, as more millennials are starting to search for their first home. Taking certain actions can give you an edge in attracting the millennial market.

Highlight the Flexibility of Open Spaces
If millennials are one thing, its indecisive. They’ve grown up with the idea that they can go anywhere and do anything. The trouble is that they want it all and can be fickle about where to settle. They may enter the home-buying market several times before they seal the deal. What if there’s a career change? Are kids in the future or not? Maybe the contract job (and the regular income) will dry up. To close the deal with a millennial buyer, you have to show off, for example, how the spare room can be used either as an office or as a nursery. It can even be used to generate income by renting it out on space-sharing apps or to a regular renter.

Sell the Potential of Genuine Fixer-Uppers
Saddled with debt and settled in lower-paying jobs, most millennials can’t afford much more than a small, basic house. They understand that there is a potential value in a bigger home in questionable condition, though. Armed with confidence and education (and home-flipping reruns on TV), they are often open to investing in fixer-uppers. In a market where another agent is a text message away from a skeptical millennial, don’t lose the trust of a potential buyer by trying to sell a lemon.

Balance Eco-Friendly Features With Home Automation
If you want to catch the attention of the growing millennial market, showcase how eco-friendly and smart the property is (or can be)! Be sure that a high-speed internet connection is available; if not, research an alternative. Exchange appliances that are not energy-efficient for ones with smart features. Being green is just as important, so consider advising the seller to invest in solar panels. Also, be ready to show off the outdoor living and gardening space.

Voice-recognized smart home devices from major tech companies are taking over home features. Demonstrate ways that the home can be fully automated with the right products and efforts. Consider featuring safety devices like security cameras or doorbell cameras that are tied into a smartphone app. Smart thermostats are becoming the norm as well, even in rented spaces.

Focus on the Convenience of the Location
The character of the home and neighborhood matters to millennials, so point them to quaint communities, local small businesses, and art districts. They tend to work outside of the formerly typical nine-to-five, so routine meals go by the wayside. Proximity to restaurants and delivery options is important. Also, many millennials enjoy non-motor transportation, as well, so distance from work hubs matters.

Since they also need to be able to afford it, a home in the suburbs may be necessary. If a home is located where a commute would be a necessity, be ready to provide travel times, fastest routes, and multitasking ideas like listening to podcasts or staying current on the latest news on NPR.

Assure the Simplicity of It All
Millennials pride themselves in not wanting to "adult." Growing up, they weren’t involved in home projects outside of routine chores and many are often not concerned with home skills that were once considered common. Draw millennials in with properties that come with amenities such as lawn maintenance or consolidated billing, but do avoid demanding homeowners associations. Update exterior features that require regular maintenance (a shingle roof to a metal roof, for example).

Prepare your buyers with the knowledge that will give them the confidence to close. Have a website or print-out of information that will let them know what to expect in terms of processes and costs of services related to purchasing a home. Millennials will close much more readily when they understand the system.

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7 Millennial First Home Essentials

7 Millennial First Home Essentials

RECBL - Real Estate News

More and more millennials are buying homes, representing around 45 percent of all purchase loans, and most first-time millennial homebuyers are on a limited budget.

While you may not be able to find the perfect home that checks every box on your dream home list, you can find a home you can improve on or add to over time.

As you hunt for your first home and make the big purchasing decision, make sure your checklist of new home essentials includes the following seven musts.

1. Energy-Efficient Features
Not only is energy efficiency trendy, but it also saves you money on your power bill and reduces your carbon footprint. When viewing homes on the market, look for energy-efficient features like double-paned windows, solar panels, attic insulation, LED lighting, and ENERGY STAR appliances. When you move in to your new domicile, invest in the Nest Learning Thermostat, which helps save you money on your energy bill and allows you to control your houses temperature from your phone.

2. An Entertainment Center
Moving from an apartment to a home means more room, so celebrate with an entertainment space. Equip a portion of your living room with a comfy couch, a big screen TV, and a stereo system. Don't forget a TV package and a streaming stick to access your favorite channels, such as HBO and Starz, and streaming services, including Netflix and Hulu. Trust us-your friends will thank you, and your home will be everyone’s favorite hangout.

3. Smoke Alarms and Carbon Monoxide Detectors
A smoke alarm and carbon monoxide detector should be on every level of a house, especially near bedrooms. While walking through homes, check to see if a property has up-to-date smoke alarms and carbon monoxide detectors. You may want to install smart versions, like the Nest Protect, a smoke and carbon monoxide alarm. The system checks its batteries and performs silent tests on a regular basis so you don’t have to.

4. A Home Security System
Burglary rates have been steadily increasing over time, but installing a security system can help you feel safer and protect your new home. If you buy a house that doesn’t have a home security system, you can easily install the necessary equipment with options such as the Scout Home Security System. You can connect a door panel, access sensor, motion sensor, video camera and more, depending on your needs.

5. A Home Improvement Magazine Subscription
Whether you like it or not, owning a home comes with a lot more responsibility than renting. You’ll occasionally spend weekends and afternoon’s fixing something or working on a home project. Even though just about every project type is available on the internet, subscribing to a home improvement magazine, like Better Homes & Gardens, serves as a homeowners initiation to all house-centric projects. Along with tips for home maintenance, you can also find inspiration for your next project in the leaves of these handy prints.

6. Wallpaper
No, were not back in the 1960s. Wallpaper is back and trendier than ever. If you find a home with wallpaper, don’t leave screaming. Depending on the style, you may be able to make it look modern, or, if a room is boring and you aren’t sure how to spruce it up without breaking the bank, try a modern wallpaper trend, such as a marble pattern. If you aren’t sold on the idea, try temporary wallpapers that are easy to remove.

7. Plants
Greenery is one of the biggest home decor trends, so bring the outdoors inside with houseplants. Not only do they clean the air, but they’re also inexpensive ways to decorate a room and brighten up even the darkest of spaces. For a small room, decorate with a tall cactus or fiddle leaf fig tree to make the area look bigger. Don’t have a green thumb? Try a faux plant, which only requires occasional dusting.

These must-haves are just a few to add to your checklist for an ideal dwelling. Think we missed something? Share what other essentials you think should be on every millennials new home list.

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Time to Close for Millennials Swings From State to State

Time to Close for Millennials Swings From State to State

RECBL - Real Estate News

The average time it took millennial mortgage borrowers to close a loan was 44 days in July, but swung from state to state, according to Ellie Mae(R)’s recently released Millennial Tracker, a measure of millennial mortgage applications. Closing a purchase loan took 42 days, while closing a refinance loan took 46 days. The amount of time it takes to close, varied by state.

Borrowers in California are looking at a 37-day window and borrowers in New York are looking at a 60-day window.

"Between the competitive housing market with limited inventory and the 30-year note rate at a 2017 low, some millennial homeowners may be deciding to stay put and take advantage of the opportunity to refinance," said Joe Tyrrell, executive vice president of Corporate Strategy for Ellie Mae, in a statement. "With many more millennials interested in becoming homeowners for the first time, however, the purchase market is still very strong."

The average time it took for millennial borrowers to close an FHA loan-one of the more popular types of loans for millennials-was 44 days, up by one day from June, according to the Tracker. The average time it took to close a VA loan was 50 days, up by five days from June.

Millennial borrowers’ average FICO score rose in July, to 724 from 723 in June.

Source: Ellie Mae

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The Yin and Yang of the Millennial Market

The Yin and Yang of the Millennial Market

In a recent release from apartmentlist.com, it’s very interesting to learn while millennials are starting to buy homes, there are not enough homes in their price range on the market - and even if there were, many could not come up with a down payment.

In his latest Apartmentlist Rentonomics report, Andrew Woo writes that during the Great Recession, investors bought countless foreclosed properties, most of which were starter homes.

And rather than selling when prices recovered, investors turned them into profitable single-family rentals. And as a result, Woo says there are very few existing starter homes on the market.

Woo points to Megan McGrath of MKM Partners, who says the housing recovery was primarily at the middle end of the market which drove up home prices and land prices followed. With higher land prices, it is harder for home builders to make a good profit at lower home prices.

During the housing recovery, the price spread between new and existing homes increased because builders were focused on the move-up buyer. But Woo says now middle-end sales are starting to slow down, and builders need to target new buyers to sustain growth.

He says big builders are starting to introduce new product lines at lower price points, and these starter homes are selling well. But the only way for builders to lower prices and take a hit to their margins is if they see big growth in new orders, and he is not seeing that happening anytime soon.

Woo says the demand is clearly growing but is not as strong as demographics would suggest. Single-family construction still stands at 18% below its 25-year average, and he warns about a developing affordability gap.

Aparetmentlist.com recently surveyed 24,000 millennial renters and found that 80 percent want to purchase a home, but face a huge obstacle in affording one. Woo says its because millennials vastly underestimate the savings needed for a down payment.

Woo fears based on current saving rates most millennials will need at least a decade to save enough - and that a lack of savings, combined with the shortage of affordable starter homes, will leave a large share of millennials renting for years to come.





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Millennials drive housing confidence higher, despite red-hot prices

Millennials drive housing confidence higher

Millennials drive housing confidence higher, despite red-hot prices
#realestate #cashbuyerslists #millennials #confidence #home #buyers #sellers #housingmarket #housing #income #hot #spring #time 

Both buyers and sellers alike are feeling very good about the housing market this spring, even as home values hit new highs and mortgage rates move up. "Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers,"
Read More> http://bit.ly/RECBL-March7



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MILLENNIAL HOMEBUYERS CONTINUE TO MIGRATE INLAND

Millennial First Time Home Buyers

Cash Buyers Lists News

Millennials continue to make their way inland in search of affordable housing, with Minneapolis, Minn. experiencing the most millennial home-buying activity this fall, according to October data from Ellie Maes Millennial Tracker, a measure of millennial mortgage applications. Based on the data, Philadelphia, Pa., St. Louis, Mo., Chicago, Ill., and Detroit, Mich., comprised the top five cities for millennial homebuyers in October.

"As housing prices continue to rebound, millennials are increasingly representing a higher percentage of homeowners in the middle of the country," said Joe Tyrrell, executive vice president of Corporate Strategy at Ellie Mae, in a statement.

Millennial borrowers FICO credit scores, on average, were 722, according to the data. The Midwest has shown marked improvement in credit overall, more so than any other region in the country.  Millennial homebuyers, especially in the Midwest, are also affording more than they were just six months ago, with the average appraised value up from $212,939 in June to $223,153 in October.  Profiling millennial homebuyers, the Tracker shows approximately half of millennial borrowers, with an average age of 28.7, were single and half were married-a near-even split that underscores the growing trend toward single homeownership. 

Millennial men, however, were more likely than millennial women to be the primary borrower.
More than three-quarters of closed loans for millennials were purchases, while 22 percent were refinances, according to the data. The average loan amount was $184,733.

California and Florida experienced the least millennial home-buying activity this fall, with the Miami, Los Angeles, San Francisco, San Diego and Tampa-St. Petersburg metropolitan areas comprising the top five on the other end of the spectrum.
Source: Ellie Mae

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