NMP - April 2017 - 32
X Marks the Sale How Gen X Can Make You Richer This Year By Bubba Mills APRIL 2017 n National Mortgage Professional Magazine n NationalMortgageProfessional.com 32 ou'd do well this year to remember the forgotten generation ... that's what Generation X has been dubbed. But these folks, ages 37 to 51, are the only generation to buy more homes in 2016 last year than it did in 2015, according to a new National Association of Realtors (NAR) report. NAR adds that more Gen X sellers are expected to enter the real estate market this year. Okay, that sounds pretty good, but why else should you pay attention to Xers: Y l l l l l Ninety-six percent of Gen Xers financed a previous home purchase, and they were more likely to finance than older boomers. The median downpayment ranged from seven percent for Millennial buyers to 20 percent for older boomers. They're making the most money with a median $106,600 annually. Younger boomers (aged 52 to 61) average $93,800 annually, while Millennials (36 and younger) earn $82,000 annually. Gen X sellers have built enough equity to finally sell and trade up to a larger home. The share of Gen X homebuyers grew to 28 percent-the largest percentage since 2014. Gen X homeowners represented the largest share of sellers in the past year (27 percent), followed by older boomers (23 percent) and younger boomers (20 percent). And perhaps most importantly ... they're all about real estate. Lawrence Yun, NAR's chief economist, says more than 80 percent of Gen X buyers consider a home purchase a good financial investment. So, what do you do with this promising information? How do you tap Gen Xers? Here are some tips to keep in mind as you market to and work with this age group: l Continue to cultivate your online presence. Gen Xers are following their younger counterparts when it comes to searching for real estate-related needs-upwards of 88 percent start with the Internet. Online is no longer just a marketing tool, but an essential element of business. So l l make sure your Web site is attractive, full of valuable information and easy to navigate. And don't forget social media. Gen X is using it and you need to be on it. Keep a sense of urgency. The survey found that Gen X sellers were the most likely to have wanted to sell their home earlier, but waited because their home had been worth less than their mortgage. Now that the market is stronger, emphasize the timeliness and that fact that interest rates are on the rise. Strengthen your referral networks. A full 60 percent of responding sellers found a real estate agent through a referral by a friend, relative or neighbor, or used their agent from a previous transaction. If you're not asking for referrals, you're asking for trouble. And let me hear from you: What do you think about Gen Xers. Have you segmented your marketing efforts to better communicate to different demographics in your farm area? Where are groups of Gen Xers meeting in your part of the country? What can you start doing today to improve your chances of reaching this important group of consumers? Please send any comments or questions you have to Article@CorcoranCoaching.com or visit Facebook.com/CorcoranCoaching. Bubba Mills is CEO of Corcoran Consulting & Coaching Inc. He may be reached by phone at (800) 957-8353 or visit CorcoranCoaching.com.