Property ManagementTips on Working with Senior Clients
The generation gap isn"t just a phrase from the "60s. It still exists. Each
generation has defining characteristics. Among those homebuyers and sellers who
are 65 and over, often called the Silent Generation, the pervading character
is duty and loyalty driven, uncomplaining, frugal, placating and
family-oriented. This generation can also be too trusting, cautious, and
fearful of being taken.
The Silent Generation is downsizing even while their sons and daughters, the
Boomers, are upsizing. Many of these seniors have lived in their homes for over
20 years, and the majority own their homes in full.
Seniors constitute one of the largest and most lucrative homebuying and
selling demographics in the nation.
According to Tim Corliss, outgoing president of the California Association
of REALTORS® and co-founder of the Senior Advantage Real Estate
Council, there will be about 22.4 million homeowners over the age of 65 by
the year 2000, equal in numbers to the lucrative prime trade-up range of 34 to
44-year-olds. He believes that this demographic will require sensitve treatment
and specialized service.
"The advantage of working with seniors is that they tend to have more money
and a lot more equity to work with," says Corliss. "Their number one fear is
doing something with their property, because they know they don"t have a second
chance to build equity."
"Most are concerned with running out of money before they run out of
breath," adds Corliss. "People are living 20-25 years longer than they budgeted
for."
Corliss recommends that the Realtor become part of the senior client"s
financial team. Becoming familiar with the tax ramifications of selling is
paramount.
Would you like to work with this growing population of home buyers and
sellers? You can contact Senior Advantage for a packet of information about
marketing to seniors and apply to become a SRES, a Senior Real Estate Specialist. The SRES designation is recognized by the NAR and is undergoing the NAR"s approval process, according to Steve Goddard, chair of the designations committee.
Some tips on working with seniors:
Be patient
Many seniors have lived in their homes for more than twenty years. In that
time, many changes have occurred in the real estate industry.
Ask questions
If you don"t get all the information, you won"t give the right advice or make
the right decision. Find out if your senior client has a will, a business plan,
and any special needs. According to Corliss, a surprising two-thirds of seniors
don"t have a will or a financial plan for their equity or savings.
Don"t generalize about your senior client
Not all seniors are alike, nor do they have the same goals or wherewithal. Some
are healthier, more alert and more active than others, and have vastly
different financial needs.
Get the right information suited for his/her individual needs
Find proactive solutions. A senior"s equity is often the only financial asset
s/he has. Home selling and buying solutions must be found that will offer the
best opportunity to preserve and enhance the money generated from the home sale
and reinvestment into another home.
Also See: Targeting the Over-55 Client