In 2000, the U.S. Census counted 35 million people over 65 years of age. Every seven and a half seconds, somebody turns fifty, and they still have half their lives ahead of them by most estimates.
Most seniors are homeowners, and as many as one fourth are on the move. The AARP estimates that over 80 percent of people over 50 own their own homes and from age 55 to 64, nearly 26.1 percent moved. Of those over age 65, nearly 22.8 percent moved.
That's a lot of homebuyers and sellers who can be clients for a long time to come.
Seniors are ready and willing to hire Realtors who are knowledgeable about their special needs and concerns, but unfortunately, most Realtors don't know what those needs and concerns are and haven't a clue about how to fulfill them. For example, about 41 percent of all home sellers are 55 percent or older, and they have a lower median income than younger sellers, but when they sell, their homes net more cash, a median of $211,800 which can have significant tax and estate-planning consequences. When they repurchase, they tend to put down a lot more money, enabling them to either buy more expensive or second properties, which helps explain why nearly 68 percent of second home buyers are over the age of 55.
Jennifer Dodge, vice president and managing director of the Senior Advantage Real Estate Council would like to see all Realtors learn to appreciate this unique segment of homebuyers and sellers.
The more you learn about them, she says, the more you can be surprised. "The biggest surprise that they don't all relocate when they retire," says Dodge. "The assumption is they move to another state and that isn't the case. Only 23 percent relocate and many retire in their homes."
One of the biggest mistakes Realtors make with seniors is assuming that they are working with the children of the family. "Seniors can be offended when a Realtor assumes that the children are making the decisions," says Dodge. "We assume that they are moving to assisted living or retirement communities, but they don't move to cheaper, smaller places, they tend to live in single-family homes. The interesting thing is that some builders are building single-family homes in retirement communities now.
The real lesson is that seniors can't be lumped into generalities, says Dodge. But it does help if Realtors know that there are some generational differences among seniors, which account for many attitudes and behaviors.
The GI generation - Born between 1901 and 1924, GI's were the first group to call themselves "senior citizens." They have lived in their homes more than 30 years, and they are vulnerable to con games which makes them suspicious. They may want their kids involved in their housing decisions to make sure they aren't being "taken for a ride." Families are male-dominated, with long-term marriages. This is a hard-working group who came of age during the Great Depression, so they tend to be careful with their money instead of frivolous. They want experts in any area where they need help, so relationship-building is important to them.
The Silent generation - Born between 1925 and 1945, this is the only generation never to have been represented by someone their own age in the White House. As depression babies, they were sandwiched in between the duty-bound GI generation and the "Me" generation called the Boomers, and shouldered the depression values of hard work and frugality. This generation is most interested in security and easy access to amenities and facilities such as medical centers and shopping. They are active so they want to be near points of interest. If and when they downsize, they want access. They fear they may outlive their assets, and they don't want to be dependent on their children. This is the last generation to have strong social skills, where much of their social interaction is based away from television. This generation knows how to tell a great story or play a hand of bridge or a game of golf.
The Baby Boomers - Born between 1946 and 1964, this generation dislikes being called seniors, despite the invitations to join the AARP that are arriving in the mail. Because of medical and general health advances in knowledge, we know that boomers at age 50 have another 50 years to live on average. This generation has been nicknamed the "sandwich" generation because they are still raising kids and taking care of GI parents, too. Because they may be housing three generations or have frequent visitors, they tend to buy the largest and most opulently outfitted homes, and also tend to buy second homes.
So why should Realtors care about seniors and their differences? "Niche marketing is becoming important," suggests Dodge. "It is one more market Realtors can look at, and it is a niche that is immune to the economy. When a senior is ready to move - they are ready to move. It is for a lifestyle change, medical reasons, the death of a spouse, and other reasons that don't happen because of the economy.
But the biggest reason Realtors should care is that seniors are the largest growing market.
"Every 7 1/2 seconds someone turns fifty," says Dodge.
Published: January 30, 2004
Use of this article without permission is a violation of federal copyright laws.
 Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment.
Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's.
Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68.
Order Now
Review - Honors
In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.
 
Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans.
Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR
"The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors
Coverage from WSMV, Nashville - 8-14-2007
That Interview Guy - Get Inside The Head Of Today's Generation
2007 AE Institute Session - To purchase
2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9
HouseValues Mastermind call - Parts 1 2
Blanche's fireside chat with Jeremy Conaway, HAR - Click here.
To contact Blanche, email her at .
For more articles by Blanche, click here. |
