The marketplace for buying or selling a home has changed – again – and dramatically.  Along with market changes have been a natural evolution processes among consumers. Not long ago, nearly every home buyer was a baby boomer.

 

Today, the field of homebuyers is being populated by a burgeoning number of Gen X and Gen Y homebuyers. Studies on all of these groups have shown that there are definite differences among buying habits and expectations. The unique circumstances that have influenced each have created challenges for agents - not the least of which is understanding how to serve a highly independent, tech savvy, demanding crowd of newcomers. Agents need to be ready to accommodate the new buyer wave. The mantra of the post baby-boom buyer contingent includes fairness, efficiency, skepticism, and independence. To them, competition for their dollar is very important.

 

Buyer clients are progressing through an evolution consistent with changing demographic influences.  A number of studies have been conducted looking at the differences in how buyers operate and how these differences have been changing.  The baby boom generation, which has had so much influence over home buying for the last 30+ years, is beginning to lose some influence, ever so slowly, over the real estate business. The impact of the follow on generations is clear.

 

To better understand why we need to make changes to accommodate the growing influence of the Gen X and General Y homebuyers, we need to consider how these homebuyers perceive the role of the real estate agent in the marketplace.

 

A buyer from the post baby-boom segment thinks very differently about a real estate agent than the preceding generation. This buyer considers a real estate agent to be a helpful individual but not an absolutely necessary component of the home purchasing process. This buyer knows that his or her parents used real estate agents to purchase homes and to sell homes -  that there is still value to their services. These buyers do understand that their odds are better when they have an experienced professional on their side.

 

But, the Gen X and Y buyers also know that they, as buyers, are extremely resourceful and possibly even savvier with technology than most agents they might hire.  They know that they can turn on their computer and begin searching for homes instantly. They are good at making quick comparisons between and among properties and calculating important information about homes such as price per square foot and taxes.  Most have no problem researching demographic information such finding detailed data on the area schools.  Most are capable of quickly locating builder incentives and they know where to find new home communities.  Very few question the need for having a real estate agent at all while most know agents may be able to save them money and that other services provided by real estate agents are of real value - such as local market knowledge and experience with negotiations and tactics.

 

Gen X, Gen Y buyers want personal, hands-on involvement in the home search process. In the past, buyers relied almost entirely on real estate agents to narrow down the broad field of properties to a short list of homes that were good candidates for purchase. No longer is the buyer a captive of the real estate agent. The growth in availability of online research tools, most notably local MLS systems that have enabled comprehensive public access, has changed how buyers look for homes.

 

In fact, 92% of buyers today begin their research on the Internet even before contacting a real estate agent.  Many of these buyers have narrowed down homes to a small group of properties of interest in advance of contacting real estate agents.  These are the buyers who are who are most interested in maintaining control over the buying process and who want to have an agent who can work with them as a partner. They want an agent who can move the process along efficiently and help them gain every advantage at the negotiating table.  These buyers are not looking for agents who tell them which homes will be of value to them; rather, they want to tell the agents what they want and they want to be listened to - intently. They want a qualified advocate who is a market expert, highly knowledgeable and willing to fight for them - not an old fashioned property pusher.

 

Today's younger buyer wants maximum flexibility in the home search process.  They are accustomed to instant gratification through instant feedback.  When asking questions, they want and need answers immediately.  They want to have agents who are quick to respond and who are willing to allow them to participate in the process in a meaningful way.  They don’t mind rolling up their sleeves to work side by side with an agent – and actually hope to find an agent who can work that way. The kinds of questions they have are less about generalities and much more about specifics.

 

Home buying is always an emotional process and no less so with this generation than before. The Gen x and Gen Y buyers want to understand, not only how much they are spending, but also what the agent is earning and why. They want agents who are at the top of their game yet are not boastful. When they look at an agent's website, they want information not a dissertation on the how magnificent the agent is. This generation is 100% media savvy. They are skeptical of any claims that are made that might influence the sale of anything.

 

This group does not mind direct confrontation in negotiation - with friend or foe – seller or their own agent.  They are highly self-sufficient and skilled at multitasking. This group tends to be impatient, loathing having their time wasted.  An agent who is slow to respond to a Gen X or Gen Y client’s needs will likely lose that client quickly. 

 

Agents willing to earn their commission dollars are what these buyers want. These post boomers expect fairness and equity in all of their relationships including their relationship with a real estate agent. To these new buyers, maximum service is a must.