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Matthew Ferrara Understanding Re Generational Differences
 

Matthew Ferrara Understanding Re Generational Differences

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Learn how different generations of buyers and sellers will affect the real estate industry with Matthew Ferrara & Company.

Learn how different generations of buyers and sellers will affect the real estate industry with Matthew Ferrara & Company.

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    Matthew Ferrara Understanding Re Generational Differences Matthew Ferrara Understanding Re Generational Differences Presentation Transcript

    • Understanding Generational Differences and its Impact on the Real Estate Industry
      Matthew Ferrara & Company presents
    • The Proposition
      A Perfect Storm
      Economic: Recession
      Commodity: Prices, Oversupply
      Demographic: Four Active Generations
    • So get ready to boldy go where nobody has gone before!
    • The Key Question
      How will Gen X and the Millenials Change Real Estate?
    • !
      Real estate today was built by Baby Boomers, for Baby Boomers.
      The next generation of buyers and sellers aren’t Baby Boomers!
      What they value is a lot different than what we have been prepared to sell.
    • The purpose of a business is to create a customer. Peter Drucker
    • Create a Customer?
      Different than “serve” customers
      To satisfy a particular market desire
      Must start with the desire, not the product/service (contrary to current)
    • It is the customer…
      … who determines what a business is. It is the customer alone whose willingness to pay for a good or for a service converts economic resources into wealth, things into goods. What the customer buys and considers a value is never just a product. It is always a utility, that is, what a product or service does for him.
      - P. Drucker, Effective Executive
    • So what do we know about customers...
      … and what is of value to them?
    • 62%
      31%
      Gen X
      Baby Boomers
      Silent
      Gen Y - Millenials
    • Size of Home Purchased
    • Demograph Transfers
      31
      Average age of the First Time Home Buyer
      47
      Average age of Sellers
    • Is Real Estate Valuable?
    • 64%
      Percentage of listings thatwere derived fromrepeat clients or referrals
      67%
      Contacted only one agent
      Before selecting themas listing agent.
    • What “process” did they use?
    • How did they hire us?
    • What did they want from the process?
    • Disturbing trends?


    • The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.
      Peter Drucker
    • Baylor University Study, 50,000 REALTORS, 2009
    • There is nothing so useless as doing efficiently that which should not be done at all. Peter Drucker
    • Buyers between 18-44 using Social Networks daily in 2008
      95%
    • 35%
      * REALTORS use social networkingat all, in 2009
    • 75%
      REALTORS never used a blog or podcast
    • But don't take my word for any of it….

    • Let’s look at consumer archetypes to determine what they value
    • Real Estate positioning:
      First time and move-up buyer population
      49% of new homes, 2006-2008
    • What constitutes their value set?
      Individualists, Competitive
      “Question everything, ” skeptics
      Distrustful of authority
      Prefer / “Certain” in own beliefs
      Information age mentality, skills
      Image Conscious
    • The Value Shift
      $1.80
      16 ounces of actual coffee
      It’s hot
    • You look maaaahvalous….
      $3.83
      4 ounces of coffee, 12 ounces of foam
      Requires special ordering language
      Lukewarm
    • It's happening just like they imagined it!
    • Gen X’ers Value what’s Behind the Curtain
      What they want
      WebMD experience: Extensive, accurate, engaging Information on market/services before any consideratoin of personal authority
      Consumer Reports level of Process Transparency
      Customized to individual needs
      They must be “in charge” of the outcomes

    • Take a closer look at Gen Y
    • Gen YThe :We: Generation
    • Gen Y (Gen We) Critical Facts
      78 million U.S.; 2b worldwide
      Real Estate positioning:
      Significant portion of FT and move-up populations
      6 - 12 transactions lifetime
    • Gen Y (Gen We) Critical Facts
      What’s their value set?
      Group Oriented
      Close to Boomer parents
      Highly structured lives
      Consume/d by entertainment
      Technology Normal (Integrated)
    • Millenials in Perspective
    • Technology is more than computers
    • Once again, science fiction becomes fact
    • What’s new is old…
    • What does the future hold for Millenials?
    • Social Networking = Mind Meld v 1.0
      Gen X and Y are constantly “broadcasting” what’s happening in their lives…
      You just have to be there, listening, watching for those life-changing moments that are associated with real estate needs!
    • How to Connect with Gen Y’ers
      Use technology to establish relationships
      Tether then to the process, but not to a computer (wireless)
      Decisions must be validated by the network
      Future luxury looks more like the rooms at the Encore than at the Ritz.
    • ?
      Now that we know more about the Zebra, how shall we catch it?
    • matthewferrara.comfacebook.com/mfcompany