Edward Smith, Smith CommercialThis column is offered to help educate agents new to commercial and investment brokerage and serve as a review of basics for existing practitioners.
Today people’s ages categorize them into one of five generations. Each with its own characteristics and their own buying styles. Below are six categories; the largest group, The Baby Boomers, has now been divided into two classifications. Ages Today:
• Senior Generation: 70 +
• Older Baby Boomers: 61 – 69
• Young Baby Boomers: 50 – 60
• Generation X: 35 – 49
• Millennial’s (Generation Y): 21 – 34
• Generation Z: 20 and under
In the real estate business this gives us six different clients and customers to interact with. The generation we were born into affects the way we think, react, evaluate and buy. You may get older and technically graduate to a new group, buy you will always follow the traits of the group you were born into. In this article we will examine the mature (senior or veterans) generation.
Born 1925 – 1945, 70 and older, many of their parents were immigrants; they were guided by and obeyed their parents. They lived through tough and frightening times. Many experienced the Great Depression and its aftermath, as their parents did. Lived through and many served in the World Wars. Considered to be team players; they trust the government, authority and are community active. They were brought up to appreciate discipline, hard work and self- denial. When they took a job they expected to work there for the next 30 years, reaping the reward for their hard work in their retirement years. They saved their money, being social and financial conservatives. They are high achievers, but not reckless. They value stability and prefer the status quo.
Their current focus is downsizing and affording retirement. Many are now on fixed incomes; dealing with the rising costs of health care, taxes on their home and generally everything else. Ready to downsize their home and frustrated with trying to sell the “big” house in a down market.
Slow to accept change or technology. They have worked hard all their life to be rewarded in retirement. How will this sale or purchase affect their retirement? Explain about capital gains taxes (directing them to their accountant). Many owners of commercial buildings are in this generation. Discuss 1031 exchanges. When this generation went to school, they learned by reading, memorizing, testing and repetition. They still learn best by written word, research, and study. We need conservative approach step-by-step, face-to-face. Make your presentation in a large type, report format or a flip-book style. Do not use a computer or laptop for your presentation; they may find it intimidating (and difficult to see). You could produce your flip chart materials in PowerPoint, but then print them out to form a flip-book.
Ask the client how they would like you to communicate with them, phone, fax or email? Younger agents note – e-mail or text’s probably won’t be read!
Edward Smith, Jr., CREI, ITI, CIC, GREEN, MICP, CNE, is a commercial real estate consultant, instructor and broker at Smith Commercial Real Estate, Sandy Hook, CT.
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