Do you
work with buyers or agents
between 27 and 43 years old?
According to NAR, that Gen X
demographic comprises
approximately 25% of
REALTORS®. while Gen Xers
make up over 55% of
homebuyers. What do you need
to understand about
generational profiles to
recruit and retain Gen Xers?
And what do your agents
(median age 52 year old
Boomers) need to know about
working with GenXers?
Generational Differences
It has long been known that
people are strongly
influenced by major events
that occur during their
developing years. The
traumatic events of Vietnam,
civil rights demonstrations,
feminism, and the sexual
revolution dramatically
influenced, and even
defined, the Baby Boom
generation, just as World
War II and the Depression
defined the G.I. generation.
While the boundaries between
generations may be a bit
fuzzy, there is no doubt
that generational patterns
have pervasive effects on
aspirations, values and life
styles, and in the process,
on what consumers seek when
in the real estate market.
Let's look at Gen X
patterns.
Gen X Influences
Gen Xers grew up in
a society that was largely
influenced and run by
Boomers whose intense lives
they often reacted against.
Many found their "liberated"
parents focused on careers
and causes at the expense of
families. Their parents had
the highest divorce rates in
history. Most Gen X kids
grew up in single-parent or
double-income homes. The
child-rearing theory of the
day stressed giving kids
decision-making power and
"not stifling them with
rules." Without a high level
of nurturing and emotional
bonding, they became
skeptical, with an
inclination to be
independent. Some were
forced into adult roles in
dysfunctional families.
Gen Xers were growing up
during the deterioration of
social, religious,
political, and business
institutions, which
contributed to their
disillusionment and distrust
of authority. Many saw the
effects of globalization and
the information age on their
own parents as manufacturing
jobs, and later white-collar
jobs, began to move
overseas. This was the world
that loomed large as they
went off to college or
otherwise prepared
themselves for the changing
job market. Today's
financial turmoil will
likely add to both
disillusionment and
distrust.
Gen X Characteristics
As a
generation, Gen Xers tend to
be independent ("you are not
the boss of me") and to want
choices (they are used to
website drop-down lists).
They want to be decision
makers but fear making the
wrong decision. Some experts
refer to this as "decision
paralysis." They want
instant response: they grew
up with fast food, FedEx,
and one-hour photos.
They, more likely than their
forebears, focus on the
overall quality of their
lives. Many place family
above everything, relegating
jobs to second priority.
According to a Radcliffe
Public Policy Center study,
71% of men were willing to
sacrifice pay to spend more
time with their families.
For the Gen Xer, home is
what balances life and
reflects values and
aspirations.
Growing
up, Gen Xers learned not to
expect job security, and
that has been reinforced by
the current turmoil.
However, they have wanted
satisfaction in their jobs
and have not been reluctant
to change jobs to find it.
Gen Xers often look for jobs
with flexible hours, job
sharing possibilities,
telecommuting, video
conferencing, parental
leave, or at least, with
shorter commute times. A
virtual office setting is
ideal for this group.
Gen Xers As Buyers
Gen Xers have delayed
marriage (median age of 27.1
years in 2003), as they have
sought to get established.
Yet owning a home has been a
priority with them. The
median age for the
first-time homebuyer is 32.
And the definition of "entry
level" for this generation
has changed; they have been
unwilling to settle for the
"starter home."
What
do Gen Xers look for in a
home? Given their emphasis
on family, they tend to
focus on rooms for family
living, rather than on
formal living rooms. They
want the family to be able
to spend time together. The
"Great Room" is popular with
them, and may include the
kitchen with an island, an
entertainment center, a
computer center, and space
for other activities that
the family can share. They
may also be contributing to
a resurgence of growth in
the urban core, fueled by a
desire to reduce commute
times as a means to increase
family time. The definition
of "urban core" may also
extend to the "suburb within
the suburb." Large yards
have often given way to
courtyards, where there can
still be family
entertainment/outdoor
kitchens, but with less care
(they love to hang out with
friends and socialize during
their leisure time).
Gen Xers have learned
through painful experience
to distrust institutions and
government programs, such as
Social Security, and have
been more skeptical than
were Boomers of depending on
inheritance for future
security. Having seen the
pension plans that their
parents depended on being
modified or disappear, they
have frequently regarded
their own personal
investments as their hedge
for retirement. They have
pushed for retirement
savings plans with
portability so that they can
more easily make job
transitions. Often, their
homes, too, were seen as an
investment in future
security. It remains to be
seen how the steep decline
in housing values over the
past few years will affect
that perception.
How
should real estate agents
work with Gen X buyers?
First, recognize that they
will likely come to their
sales professionals well
informed. A 2005 NAR survey
reports that of the 77% of
potential buyers who
searched the Internet, 42%
were under 35 years old.
Websites should be creative
and imaginative--don't
forget that this is the MTV
generation. Websites need to
give value, not a sales
pitch--they grew up on
commercials and blatant
consumerism and they
recognize it when they see
it. A website needs to have
quick access to information.
Gen Xers are the first
generation to embrace the
full potential of the
Internet. They may be going
100 MPH on the information
highway but they still need
help reading the road signs.
They look for value in
services and are willing to
pay for it. They want
choices. Services should not
be "one size fits all." Gen
Xers want to see the value
of a transaction and how it
can fit into their financial
future. Gen X consumers
expect to access their
transactions, reports and
documents online 24/7.
Gen Xers As Agents
Gen Xers tend to be
impatient, to put a high
value on their time, and to
show little tolerance for
having it wasted. They
relate to virtual realities,
which is to say that the
concepts presented must have
relevance to what they can
see, feel, and experience.
They show little respect for
authority. Doubting
tradition is a virtue, a way
of engaging for them. They
were certainly not taught
using "rote" memorization.
They do not focus well on
"logical steps" leading to a
conclusion. The print medium
that encouraged linear
thinking is not their
medium. They are more
comfortable with one-on-one
training, coaching and
mentoring.
Gen Xers
are independent but are
willing to work in teams.
They resist hierarchy and
prefer to be egalitarian.
Work must be rewarding and
compatible with family time.
They are fun loving and
bring diversity to the
workplace.
Time is
precious. Avoid long
meetings and get to the
point. Forget the "war
stories" and anecdotal
reports. They are
self-motivated and prefer
that you teach skills
instead of micro managing.
Make them part of the office
process. They want to be
included.
The
brokerage must support new
technologies and offer
dynamic websites. Introduce
market strategies and
promote niche marketing.
Encourage business planning
and budgeting. Teach
negotiating skills, advocacy
(agency duties), and
investment strategies.
Understand that if the work
is not satisfying and
rewarding, they are likely
to move.
Whether your
relationship with a Gen Xer
is as their agent or as
their broker/manager, it is
clear that you will need to
overcome their cynicism by
establishing a relationship
of trust and earned loyalty.
This is a fun-loving group
that wants to expand their
family circle to include
valued friends and
associates. Be there for
them.
Carmen and Lloyd Multhauf are the founding developers of the Generational Housing Specialist™ Council, a national real estate designation that focuses on the unique impacts made by different generations in establishing housing trends, financial products, negotiating skills and reaching a successful closing.
