Even when business isn’t booming, there are still plenty of opportunities to enter the senior market, especially since baby boomers often seek a simpler way of life regardless of the push or pull of market forces. Boomers are an ever-growing market segment, and they are more active and picky than the 50+ buyers in the past. Whether you’ve been working in the senior market for ages or are just looking to discover its hidden potential, you must understand how to cater to boomers’ needs to tap into a market that may lead you to new success.
Taking the Additional Time to Make a Senior Sale
To meet seniors’ long-term needs, agents and developers say selling to baby boomers often takes longer than selling to younger clients. Lucchetti notes the emotional attachment seniors have to their homes – some of which they have lived in for a lifetime – often leads to a longer lead time before they make the final move.
Hartz notes that senior buyers are often cautious and conservative – particularly in this market. However, they often move quickly when they sell their property as they are ready for the next step in their life and can be cash buyers – a huge plus in any market.
Since the sale can take longer with boomers, agents must be persistent in their communication with clients. Thompson uses newsletters and community outreach to stay in contact with seniors, while communicating with their relatives through e-mail. She says you must build a relationship over time to gain their trust, which requires you to stay in touch with them frequently.
Just because these clients are more mature, it doesn’t mean they are still living in the dark ages. Tricia Fox of Keller Williams Luxury Homes says she e-mails back and forth with most baby boomer clients, and occasionally texts with those savvy enough to do so. Find out which method of communication works best for the client, and proceed accordingly.
“Knowing the effects that arthritis, as well as loss of hearing and vision, can have on communication and decision making has a big impact on how you deal with boomers and other seniors,” says Kunicki.
How You Can Benefit from Boomer Business
Despite all the additional work required, Fox says the senior market is the “best market” to be in at the moment, as many seniors are buying a second home or downsizing and embracing the Chicago area.
While it is not always true, oftentimes boomers are the ones out there with money to spend. Boomer Project founder/president Matt Thornhill claims that the over-50 crowd outspends the under-50 crowd by $400 billion. Additionally, the latest survey conducted by ProMatura Group found that 50+ sentiment is on the rise, and that 50+ primary home purchases have risen by 5 percent. With more years in the workforce, boomers have the potential to spend a lot more money on their next step in life.
With Social Security no longer a primary source of income for many boomers, there is a growing trend of delaying retirement. The Del Webb survey found that boomers turning 50 this year plan to retire a median of four years later than 50 year olds in 1996, at age 67 versus 63. Among the younger boomers, 72 percent plan to work in some fashion during their retirement years. With more and more seniors continuing to work and putting off retirement, many are no longer interested in communities that are far from employment opportunities.
When it comes to the bottom line, most agents claim the commission in the senior market is comparable to the pre-retirement age market. Additionally, some independent senior communities offering rental properties, such as LaGrange Pointe in LaGrange, provide commission to agents.
Overall, boomers and seniors are not a market to be ignored. The U.S. Census states that the over-50 crowd will grow 21 percent in size in 10 years, while the 18 to 49 population will remain the same size. As the number increases, so do your opportunities to find additional clients – and sales. Those who cater to the senior market may find that their business grows on all fronts, if they take the time to understand the specific and changing needs of baby boomers and their families.
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Morgan Phelps, Chicago Agent Magazine
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