You might think that Baby Boomers — the generation of Americans born between 1946 and 1964 and growing older year by year — have settled down and are no longer involved in the real estate market.
Of course, that’s not a correct assessment.
The National Association of REALTORS (NAR) found that 29% of home buyers were Baby Boomers, while persons between the ages of 57-75 made up a whopping 42% of sellers. It seems safe to say that Baby Boomers are THE driving force in the real estate market and clearly hold more real estate wealth than other generations.
So how can real estate professionals best serve this economic powerhouse called Baby Boomers?
Another recent survey by 1000 Watt, a real estate branding and strategy agency, which focused on Baby Boomers. The survey asked a series of questions to 600 homeowners ages 58-75, 37% of which were male and 63% female. Some 45% were retired, and none were ever real estate agents.
When asked what they saw as the biggest challenge associated with selling, the top answer was “Logistics of planning and executing a move.” It beat out “Finding another home I like.” as well as rising interest rates and tax considerations.
So, it’s important to know that when it comes to selling, Baby Boomers fear the challenges of organizing a move (planning and packing) more than they fear the financial aspects. Doing what’s possible to mitigate the hassles of selling and moving matters most to this generation.
For Baby Boomers, another barrier – or at least a consideration – to selling and moving is climate change and the pandemic. A whopping 66% of those surveyed said that climate change and the pandemic have made selling and moving either “somewhat less attractive” or “a lot less attractive.”
Movement from the Northeast and Midwest to the South and Southwest may slow; a little cold and snow seem much less dangerous than wildfires, water shortages, hurricanes, and coastal flooding.
Of those surveyed who said they were likely to sell (just 20%), the number one answer (49.5%) was to downsize to a smaller home. Realizing financial gains was second, while getting closer to children or grandchildren was third.
While nearly half of those surveyed had been in their home for 20 years or more, 46% of them could still remember the name of the agent who helped them find their home, and 86% of them could also remember the real estate company or brokerage that agent worked for. Likewise, 84% considered the agent “a trusted advisor.”
Unlike younger generations, Baby Boomers are more “in-person” and “hands-on” when it comes to the buying and selling process. Phone calls and conversations are necessary.
If you’re a Baby Boomer, take advantage of the upper hand you have in the market. Connect with one of 8,000 agents today to help you successfully navigate selling your current home and buying your next one. To find out what you can afford, check out our mortgage calculator for help estimating your monthly payments. Download the REIN.com app and put the power of fresh and accurate listing data in the palm of your hand. It’s available free in the Apple App Store and Google Play Store. For local listings you can trust, start with REIN.com.
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