Baby Boomers Have an Appetite for Real Estate

 

Baby Boomers LOVE Real Estate

· 78 percent own their home—compared with national average of about 70 percent

· 25 percent own more than one property

· Most boomers believe homeownership is a good investment

· They want to pay off their loan early, and more than half are comfortable buying with a very small down payment

· Only 13 percent think it’s a good idea to buy the most expensive home they can qualify for

Boomers Tend to Use REALTORS®

· 60 percent used an agent to buy their last home

· 79 percent used a real estate agent for the home they sold

Boomer Buyers and Sellers Want Service, Not Hand-Holding

· Buyers and sellers both want and expect service

· They’re not looking for emotional support

· They don’t want information they can find themselves

Buyers: “Represent My Interests”

· Almost one fourth of sellers want realtors to represent their interests and coordinate the transaction

· 14 percent want realtors to manage the closing process

· 14 percent want realtors to explain all contracts, forms and agreements

· 11 percent want realtors to negotiate on their behalf

Buyers: “I already know what I can afford…please focus on other things” The services boomer buyers rate as least important:

· Follow-up after closing

· Support through emotional decisions

· Help finding a lender

· Progress reports

· Determining housing affordability

Sellers: “Help me set the right price, please”

· 17 percent want help setting the right price

· 14 percent want realtors to represent their interests and coordinate the transaction

· 12 percent want realtors to show the home

Sellers: “I’m not as interested in advice or progress reports” The services boomer sellers rate as least important:

· Follow-up after closing

· Virtual tours

· Insights about competing properties

· Progress reports

· Advice

Windows of Opportunity – As Boomers Approach Retirement - May not be ready to retire, but ripe and ready for asset diversification

· More than half expect to work until at least 70

· 79 percent say asset diversification is important

· Most report that less than 10 percent or none of their net worth is in real estate investments

· Boomers have a median of $100,000 in equity in their primary residence

· Boomers earning at least $100,000 per year have a median of $150,000 in home equity

A Golden Opportunity -- Let’s sell them a house!

· Near cultural offerings

· Near family

· On a golf course

· Access to education

The Bottom Line

· Boomers have a strong attachment to homeownership

· They want professional services from realtors

· They are likely to keep working into their retirement years

· Adding investment real estate to their financial assets could provide Boomers with additional financial security