Real Estate in A Brave New World
Thursday, January 31, 2008 at 09:45PM I know it's been written about many times lately, but to begin this journey let me declare my position on the changing real estate industry and what I see as a budding baby boomer bonanza (say that fast three times).
Call me Pollyannaish, call me Panglossian, call me a cheerleader or a died-in-the-wool fool sporting rose-colored glasses, but I foresee a brave new world in real estate, and in this one, no Soma is required and freedom of information will break you or make you. All that’s required is to pay attention, get wired to the internet, use the best of the old practices, work hard and gain the knowledge necessary to be a bona fide expert who possesses the service skills of a top-notch waitress at a Texas roadhouse.
Not only do I think there’s an oncoming demand in the real estate market from elevator riders waiting to get to the bottom for bargain basement prices, an immediate mini-boom, I think there’s another flourish of buying that could go on for quite some time – baby boomers.
Despite the rhetoric from politicians who claim we’re on the edge of ruin, there’s a lot of wealth in this country, and it’s congregated in metropolitan areas that have outgrown, or never had, an appeal for comfort, hominess and quality of living. Baby boomers (BB) will have second thoughts about retiring in areas where road rage and pollution are the nicest things you can say about them. These places are where the money’s at, but now a large chunk of it’s in the banking accounts of BBs and will transfer anywhere their hearts desire – North Carolina, Georgia, Utah, Colorado, Tennessee, Nevada.
Many of these BB buyers will want to live in places where they can golf and shop and exercise, walk the streets and smile rather than snarl, join clubs, start a mini second career doing something they love in communities where everyone knows their names and don’t give a fig what they’re worth on a financial sheet – the easy, slow, entertaining, friendly life. I’m talking myself into early retirement, here.
These BB buyers are already net-addicted and I receive emails each day from them asking me about the area, home prices, things to do, etc. – they’re gathering information and making plans. They aren’t in a hurry and they want good, reliable, spam-free information. This has been written about many times – but what many agents don’t realize is that it’s here, now. No one’s predicting the future anymore – they’re reporting. How many are ready?
Who better to service their needs, to be their wise guides, their comforting counsel, to make information gathering and analysis painless and useful, than the modern day, internet savvy, service-oriented, friendly and efficient local realtor?
Many agents will have to change their styles and mind-sets. The new challenge is simple yet very difficult to do. It’s difficult to do because there are no tricks involved. Today’s savvy buyers are hip to the weaknesses of the real estate industry, weary of sales pitches and hype, wary of tricks and gimmicks, unimpressed with big and showy and resistant to pressure.
Service and knowledge are not new gimmicks to trick prospects in yet another way, they are achieved, earned and ingrained. Agents will have to be real people, serious professionals who take pride in excellence and genuinely love working with real people. The Slick Ricks and Charming Carlitas will find it difficult to bluff and get by in this brave new world. The old Homers who mutter obscenities at the mention of computers will have a hard go of it. The lazy will wither, and the pompous will be a side show.
The steady, knowledgeable, connected, helpful and, yes, meek (but not too meek) will inherit this world.
Mike from Savannah
Reader Comments (15)
Mike,
The BB's are some of my site's most frequent visitors. While they may not be millionaires, they have planned well for their future and are beginning to look toward how and where they want to spend it. There may be a general area they are considering but need that local expertise to really meet their needs.
Understanding, too, potential future needs of our aging population will also be necessary. Access to health care and other services, ease of transportation, and the like are all going to become issues at some point even for those of us who are the picture of health right now. Knowledge of these will be necessary for any Agent who wants to serve this large portion of our population.
Cathy, yes, knowing their needs is critical. The Villages in Florida, although it has become a monstrosity of a place, is what I see the future holding. They have housing built around shopping villages, each village has a center square with live entertainment, and as they grow they add another village, each with a golf course nearby, medical facilities close by - everything is close enough to get to by golf cart. The golf carts are all specially designed, like one will be a Cadillac design, another a Roadster -- it's incredible.
The whole community is geared toward service needs of retiring baby boomers. This will be replicated in many places on smaller scales -- and agents will have to understand all the nuances.
When i was down there last, the buzz on the radio was an outbreak of venereal disease in the community - retired? Not fully.
We have a similar place in Plymouth called PineHills. My Aunt and Uncle love it there in the summer and then high tail it to Naples, Fl in the winter.
Hmm, venereal disease. Might not be a big selling point. lol
Ha!
I don't know, Mary.I mean,there are medical facilities within golfcart range.
My friend said the men are outnumbered by the women, and that if you are a man who can see at night and have a drivers license, you are considered a Brad Pitt.
Mike, I don't know if you're a married man or not? But I hope you weren't chasing the blue hair's in the Villages.
LOL, it's so funny - when I was reading your article all I could think of was the villages. When Arnold Palmer sets up a golf course in the community, you know they are really on to something.
Also, it was funny to see them picketing his golf course to lower the fees. They even have their own television production company there. Local advertisers can pay to run their commercials to all the locals.
I think we will see some very interesting communities popping up over the next ten years.
Yes, Chantal, it's amazing how self-sufficient the Villages is. They were picketing for lower fees? Aren't they like $150.00 a month and free life-time golf?
Damn, that sounds like a great deal.
More brilliance from the Mikester.
OK Mike, you are now committed to the Blogosphere! You belong here.
New Blog of the Week: Bonzai Real Estate Blog
Bonzai rocks!
Thanks, Jay. I can't tell you how much this means to me. You are a kind and generous man, someone I am proud to be associated with.
I thank you for including our state. We will be getting one or two of those communities here in little ol' Cedar City, UT. One is in the final stages of set up and the other is going through the planning commission and city council.
I think we are going to experience another boom here in the next few years with the BB retiring and looking for a place to enjoy. We also have the advantage of being a place that many of the BB left for and want to "come home."
Thanks for the great blog as always.
Thanks, Darcy. I have always wanted to visit Utah.
I put up Circlepix, thanks for the heads-up.
I followed Jay Thompson over here and have bookmarked your blog.
Good stuff!
In the last couple of years, we have had an explosion of inquiries from BB's who want a diverse village or urban lifestyle. They want single level, lock and go properties. They want sidewalks. They want to walk to restaurants, book stores, the gym, theaters and perhaps a neighborhood pub. They also like the idea of living close to San Diego's rail lines, which can carry them up and down Southern California's coast line (no designated driver needed).
Roberta, thanks for visiting. Yes, I've done several lock and go transactions lately. I'm looking after a couple, just checking them once a week for a minimal fee.
Hi Mike, I followed Jay T. here too and like your style! I have recently begun to target BBs on my blog and am amazed at the response I've gotten so far. Apparently this is a niche not yet tapped here in the Poconos.
More importantly, I wanted to tell you that your prediction that 'The steady, knowledgeable, connected, helpful and, yes, meek (but not too meek) will inherit this world' is dead on. But really, it's always been true.
Keep the rose colored glasses, they suit you!
I've got 'em on right now, Lisa. Good to have you here.