There is a segment of our industry out there that really believes the status quo is the way to go in that the executive level 40 and up group is where it’s at- maybe it is, but you’re missing out on so much more.
Preface: In our market, home prices vary from starters in the $150s to step-up homes in the low $200s to $260s. As with any market, it really depends on where you want to live.
My last three clients, all in their mid-twenties have amounted to just over $1Million in sales. Looking at your client base the way you may look at your children may not be so profitable. What I have found in my own personal business is that the twenty to thirty something crowd really is smarter- they really are savvy, but yes, they are raw in the sense that they have an idealistic approach to everything they do. The plus generation looks at this crowd and tends to demean them whether they mean to or not. The perception is that they have no knowledge, no money and no focus- the way maybe you were when you were 20-something. The reality is, this modernized post teen makes more money than our parents did at a much younger age, and they’re investing. They’re asking great questions about the market and they just want validation of their knowledge.
So. If you aren’t taking the internet seriously, and if you aren’t taking seriously that 20-30 something generation that calls you up knowing everything, you might be missing a valuable opportunity.
SUGGESTION: If you are considering revamping your site and business online to reach out to a broader segment of the market, my suggestion is simple. Hold your own focus group. Sit down your last 10 buyers all at once and ask them about your business, their ideas, problems they had in home searching, and let them be your guide. Be sure your group is a broad cross-segment of the market reaching from the 20s all the way up to the 50 & 60 somethings. I’m sure they love pizza and soda, or rent a room at Dave & Busters to host it. I would charge you big time to hold a focus group, but you can do it yourself. The key is- ask questions then shut up and listen. You may be surprised with what you hear and in saying that, have two other people from your firm on hand to quietly observe (seperately) and take notes only; compare notes the next day and add it all together (recording your session is also advised to clarify). Every market is different and looking nationally for your answer may take you down an expensive dead-end road.
If you want to zero in on this (20-30 something) demo specifically, call one of your local college professors and ask to borrow some of their students- “Will give opinions for ramen or beer money.”
Get out of your box before it collapses in on you.
[photo / Brandon Martin-Anderson] Spend some time over at www.thatotherpaper.com really fun reads…
Austin Realtor's Wife
June 15, 2007 at 8:45 pm
Strange- you weren’t even in the office when BawldGuy.com and I were on the phone talking about a similar topic today- it’s too bad that a great many Realtors snub their noses at people in their 20s and 30s!
We are part of the “research generation” because we’ve had the Internet for all of our adult lives. We have an idea of what we want, but we need a specialist to guide us in the right direction (and affirm us as you mentioned). 20/30 year olds can bounce back from failed investments better than a 50/60 year old AND 20s/30s have DISPOSABLE INCOME (aka many are without kids, boats, land, homes, investments, medical bills, debt, parents in nursing homes, etc).
Great article- this is one of my pet peeves and you’ve nailed it. New Realtors should take notes!
October 14, 2007 at 12:02 am
Another reality to take notes on is that the young and newly ultra rich look like everyone else. The pre-IPO winners are incredibly wealthy and incredibly normal. If you make the assumption that the guy in the torn jeans, long hair and Prius doesn’t have any money to buy a house, you’d better think again.
January 6, 2009 at 12:04 pm
I am going to agree with you very much Benn.
I’ve been working with a lot of the twenty-somethings right now. Have two in contract, one set to buy, and another clearing up a few things. Granted, the price point is a bit different – all four will probably get me about $350,000 in sales.
But you know what, I’ll take that over sitting at home and doing nothing.