As the Baby Boomers move into their final move-up homes, the market is ready to serve the Generation X homebuyer. If you are trying to market to these younger buyers, especially first-time buyers, a good place to begin is to examine the selling trends that are most affecting the real estate industry today in relationship to the buyer's age, culture, and mindset. This will help you better understand their needs as buyers, and will enable you to tailor the right set of services to meet those needs.

Here are a few cultural and economic trends that affect the Generation X homebuyer.

Characteristics - Skeptical, Aloof, Elitist, Pragmatic

Just as the Baby Boomer generation has its characteristics, so does the "Generation X" first-time and move-up homebuyers. The Gen Xers are children of wealth, privilege, and instant gratification. Very few have been to war. Nevertheless, they are also the products of the highest divorce rate in history, and the first generation to attend school with metal detectors on the doors. For a number of reasons, the Gen Xer says, "Prove it or move it."

"Question everything" is their cultural motto, and if they don't like the answers, they do business elsewhere. Like all generations, they are egocentric within their own culture. If you can't speak their language, or do business in the medium that they are comfortable with - namely the Internet - they will dismiss you as a dinosaur. Solution: Forget "vanity" advertising campaigns. They don't care about you, they care about what you can do for them. That means work the way they want to work - via e-mail. They want to do their own homework - let them, but point them to sources you trust. Hire someone on your staff as an assistant who can bring youth to your team, and communicate the Generation X perspective in your marketing plans.

Buyer's Advocacy

This is the generation that is driving open information consumerism. That means buyer's representation. If you try to show this buyer a home that doesn't fit his/her profile simply because it is your newest listing, you will lose. This customer wants an advocate. They aren't fooled by the old saw that the seller pays the agent. They are smart enough to know that the buyer pays the agent out of the transaction proceeds, so they want their money's worth. If buyers really believed they were represented free, the Internet home search sites would be empty.

The solution: Don't play the shell game with this generation. Don't hide information. Don't serve two masters - either you are representing the buyer or you aren't. You must clearly show what value you can bring them in the transaction. If you can't truly represent them, why should they use your services?

The Impact of the Information Age

First-time buyers were weaned on the Internet, and most are computer literate. With the deluge of information that can be found via the World Wide Web, buyers are obtaining information for themselves about the home buying process, leaving agents out in the cold. On the flip side, they are also being given a lot of misinformation. The result is confusion and a buyer who is reluctant to act.

The solution: Be as familiar with the Internet as they are. Head disaster off at the pass by consolidating the best sites for your buyer and e-mailing them the URLs before they get bogged down on the 'Net. Your helpful, but hands-off approach, will be appreciated. Let them shop for a loan, look at homes, or learn about the process on their own time in their own way. Be there as a safety net. Deliver information and services as directly as possible. Know what they know.

Ask a lot of questions which will help your buyer sort out what they want and don't want. Don't add to the confusion by showing them loans, homes or information they don't need. Remember, this buyer is very wary of hidden agendas.

This buyer will also not only test your patience, but will require you to be up-to-the-minute in your Internet/technology skills. Be prepared to communicate primarily via e-mail, and be able to send photos and listings via e-mail. Tell it like it is. Be direct. Don't waste their time.

The Seller's Market

Despite seasonal adjustments and predictions by the National Association of REALTORS®(NAR) and the National Association of Home Builders(NAHB) that home sales will not be as high this year as last years record sales, many communities are still reporting record or near-record sales.

The result is the do-it-yourself Internet buyer is going to use any means possible to find a home, including having multiple agents work for them, calling on FSBOs, looking at new homes or having a home built. Or giving up.

If your community is in a hot market, perhaps what your buyers need is an education about the economics of the marketplace, and what they can do to position themselves to buy the home of their dreams.

The solution: Explain the advantages of working with one agent, that you can network with other agents for them, negotiate better prices on new homes, and help them get into the home they want faster. You can help them become buyer ready - show those sellers and builders that they are serious.

Tell them that the best indicators of buyer readiness are:

*The buyers are working with an agent. This immediately adds credibility to the buyer, because few agents will spend time with an unqualified buyer. A buyer working with an agent generally will have a clearer idea of the type of home they want, and will be pre-qualified by a lender.

*The buyers are pre-qualified by lenders. This is the surest sign that the buyer is serious. They know the price range, and probably the type of home and the neighborhood they want.

Fear

Along with the excitement of owning a home for the first time, come many fears. Buyers fear such things as choosing the wrong home, getting into the wrong school district, not being able to resell if necessary, overpaying for a home, discovering the need for expensive repairs, and not being able to make their payments.

Buyers think the largest purchase of their lives is their home. It isn't. The loan is.

The solution: Putting the home loan in perspective will go a long way toward building your credibility with the buyer. Helping your buyer get pre-qualified is not just a convenience for you so you start showing them homes. It can also be an opportunity to build confidence.

Ask your buyer what their concerns are. Be ready with school reports, crime statistics, neighborhood profiles, or whatever it takes to ease their fears. Offer the option of a home warranty if the seller hasn't provided one.

With the first time buyer, handholding is part of the job of the Realtor, even if the customer thinks they don't need it. A clever agent will find a way to hold the buyer's hand where the buyer never feels a thing.

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