The size of the boomer generation is about even with Gen X, and the millennials, making these three groups dominant in the housing market. Many people focus on the boomers, as this generation is aging and it is inevitable that downsizing will be in their future. But get this…have you realized that the Gen X “kids” are now between 39 and 54 years of age? That’s right, the Gen X generation was born between 1965 and 1980, and they are in their prime home-buying years!
So how can we help Boomers and Gen X’ers to make the decision to move?
Since the market has been healthy for the past several years many boomers aren’t aware of some of the benefits for downsizing and moving into their “forever home” now while the market has willing buyers. When prospecting this market vertical, the question to ask a boomer-owned property is simple: “Do you think interest rates will go up or down?” If your prospect thinks like most people, they will respond that the rates are bound to go up as they are at such a low rate now.
For Gen X prospects born before 1970, they are starting to face the empty nest syndrome as their children head off to college. Downsizing may help them better fund their children’s college, their own retirement fund, or allow them to purchase that cabin on the lake they’ve been dreaming of.
With the anticipation of rising interest rates and the slight increase in inflation, providing different options can help sellers to see that it may be the perfect time for a move. When a prospective homeowner understands their options to downsize to a smaller home, relocate to a different climate, free up dead equity to purchase a second home, refinance their present property, or make a decision that fulfills their lifestyle, you have opened the door to getting more listing inventory. When teamed up with your lender partner to review finance options, you become their valuable team resource to help navigate a timely window of opportunity.
You and your lender partner can help them to make their best real estate decisions based on several factors that include the real cost of money, the value of moving up or down, and/or the cost of simply staying put.
Other options for securing more listings require talking to more people. Target for Sale by Owner property owners and follow up on expired listings. Set up an introduction with estate attorneys to work together on estate properties that come up during the year. Even open houses offer an opportunity to meet buyers that may have to sell before buying their dream home.
If you aren’t convinced that inventory is available, run the numbers in your local MLS and see how many properties have been listed and are under contract in the past few months. People are moving! Real estate is driven by life changes: marriages, divorces, job relocations, upsizing, downsizing and everything in between. Don’t buy-in to the belief that there is no inventory. Be the agent that focuses on how to provide the ultimate value to get more listings by providing high relevant value and services to be their Realtor® of choice.
*For a complimentary podcast on forever home strategies, please visit this link.
