A Real Estate Agent's Guide to Selling to Retirees

Throughout a real estate agent’s career, it’s to be expected that they will have to evolve and dynamically shift their selling and marketing strategies. They’ll need to stay up to date on new developments in the world of real estate, regularly pursuing all of the essential real estate agent publications. If you’re a real estate agent, you’re probably well aware of this. You know the ins and outs of this constant self-improvement process, and you’ve come to terms with the fact that you need to stay on your game to succeed in this business. But what can you do to break out of the rut and get ahead of the curve? Enter: senior’s real estate! This lucrative and highly enjoyable sector of the real estate market is primed and ready for the taking, beckoning welcomingly to all ambitious real estate professionals who want to reach the next level. First, we’ll look at how the senior real estate market is doing, and then we’ll see how you can break into this market.

What’s happening in senior real estate?

The senior real estate market is expanding rapidly, and while many wonder what the cause of this is, studies analyzed the phenomenon. The main reason is the evolution of the species coupled with the development of medicine. Modern medicine increased life expectancy drastically over the last half-century. This results in people living longer and healthier lives. A natural result is more seniors. But how does that impact the housing industry? Besides an increased number of seniors worldwide, we can also look at the socio-economic factor. So-called baby boomers are people born after World War II who overcame the 65-age threshold in 2011. By 2030 the rest will also turn 65 and make for 21% of the country’s population. This results in a higher demand for senior housing. The senior housing market is one of the most profitable real estate niches; it surpassed the National Property Index and multifamily properties in returns and income returns. What makes this real estate market even more attractive is that amidst the COVID pandemic, it was the only residential real estate market that exceeded the NPI and multi-family total returns. While the NPI had 0.74% returns during the first quarter of 2020, senior housing grew to 0.79%. It’s worth diving into the senior real estate market. From assisted living to active adult communities, senior living is a hot sector of the real estate market. It will also continue on this trend as life expectancy will lead to continuous growth in that age group. Researches show that by 2029 an estimated 10,000 baby boomers will turn 65, at which time, for every four US residents, there will be one senior citizen. This unstoppable trend will increase the demand for senior living facilities on the market based on the level of care, amenities, and other senior-related interests. So what can you do to break into this market?

Marketing Strategies for Baby Boomers

With almost 40% of all 2020 homebuyers having been at least 55, baby boomers are part of a growing housing market segment. Seniors, retirees, and those who will soon join their ranks belong to the most affluent target demographics in which real estate agents do business. It is the real estate agent’s job to change their marketing techniques to best suit their target market. The most important factor to analyze is the type of homes that seniors are looking for. With children all grown up and a decrease in the amount of living space necessary, an American Associations of Retired Persons’ study from 2018 shows that around 41% of adults over 50 consider downsizing for their retirement. This, coupled with their decreased mobility, influences the housing options they seek. Their budget also plays a vital role in the housing types and prices they can afford with unexpected expenses; living on less is another factor influencing their decisions. Marketing strategies may need some alterations for these seniors, but online marketing is not entirely obsolete. Studies have shown that Facebook is used by around 65% of 50-64-year-olds and by 61% of seniors over 65. While this is a direct result of their desire to keep in touch with their families, Facebook ads are an excellent way to go. Let’s see other concrete marketing strategies for Baby Boomers.

Do your homework

When dealing with seniors, you must be aware of their priorities, worries, and desires. You have to know how to talk and relate to them. As this is a specific niche in real estate, you could get the Senior Real Estate Specialist (SRES) certification through the NAR. Other options include doing the research yourself. Whether it’s about reverse mortgages or understanding how buying a home will affect their 401(k), IRA, or pension plans, answering their questions is part of the package. With any senior generation, health care and social assistance should be a focus for any real estate agent that wants to be successful in the senior real estate market, so check the area. Confidence in the information you provide and a level of authority will work wonders, especially since they will expect this level of expertise from you in your niche. As real estate agents, understand that seniors have different worries than other age groups. Helping them will go a long way to build trust and, in the end, build your portfolio.

Refine your social skills

While working with gen-Z or millennials may need a certain amount of embellishments because even the most challenging homes are seen as something to conquer, seniors don’t like to waste time. Colorful language or glowing promises may lead to a sale, but the client won’t be happy. Treating them with the respect they deserve is key. Explaining more complex concepts might be a bit of a challenge but be patient. Give them the facts, straight and simple, and make sure you know the answers to their questions. Similar to other generations, baby boomers don’t appreciate sugar-coating. While some may require a certain level of assistance, they are independent and like to be addressed directly. This generation of seniors is the most independent we have seen in a long time. While buying behaviors in the US change based on ages, talking to their children and arranging a new home for them might not be the best idea. These baby boomers like to deal with things as much as they can on their own. Coddling them isn’t the best idea.

Listings that attract seniors

If you want to attract a specific clientele, you’ve got to offer a product that they want. Seniors may not be limited to one type of home, but some directions can be applied. We already covered downsizing, but that’s only part of it. To find out what attracts seniors the most, simply look at what budget senior home buyers typically have in your area. With a little research, you can easily find out how much this demographic is generally spending on their home purchases in any area. Once you know how much they’re spending, you can start finding listings that suit their budget and taste. You should also pay attention to their needs. While they tend to be independent, some may require a certain level of care, and you should also look into assisted living communities or other retirement communities in the area. Most importantly, however, is to talk to them and find out what each senior wants. You shouldn’t be surprised to find investors amongst them. While this doesn’t go for every senior home buyer, it’s certainly applicable in some cases.

Choosing the right marketing

While there are many benefits to marketing using online advertising and social media, you might think that conventional marketing such as lawn signs, business cards, and billboards is more appropriate. Don’t dismiss online marketing so fast. We already mentioned Facebook but let’s see what else can be applied. Telephone calls and snail mail are still applicable, but the ever-growing social media is a great option. A gentle nudge might take you to video calls and even virtual tours. Especially during our current crisis, virtual tours are the ideal way to go about showing off listings. Try guiding them through the online world, but apply the conventional marketing techniques mentioned above if you can’t. Always find ways to stay connected. Retirees, especially those that no longer work in any way, shape, or form, have plenty of time on their hands. By staying connected via phone, e-mail, or snail-mail, you show your focus on their situation. But remember, customer relationship management isn’t a thing of the past but is greatly appreciated by seniors. The agency relationship doesn’t end with the closing day. A housewarming gift is always a great gesture that will ensure your client satisfaction and great reviews. All in all, the seniors real estate market is booming, and there’s no better time to break into this market than right now. We hope we’ve given you a good idea of what to expect from this market and how you can operate with the best chances of success. With some hard work and dedication, you might just be the newest success story in the seniors real estate market!