The document discusses the impact of generational differences, particularly between Baby Boomers, Gen X, and Millennials, on the real estate industry. It emphasizes the need for real estate professionals to adapt their strategies to meet the values and preferences of younger generations who prioritize technology and tailored experiences over traditional methods. The author's argument revolves around understanding customer desires and the importance of building relationships using social networks to engage with potential buyers and sellers.

1. Understanding Generational Differences and its Impact on the Real Estate IndustryMatthew Ferrara & Company presents

4. The PropositionA Perfect StormEconomic: RecessionCommodity: Prices, OversupplyDemographic: Four Active Generations

5. So get ready to boldy go where nobody has gone before!

6. The Key QuestionHow will Gen X and the Millenials Change Real Estate?

7. !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.

8. The purpose of a business is to create a customer. Peter Drucker

9. Create a Customer?Different than “serve” customersTo satisfy a particular market desireMust start with the desire, not the product/service (contrary to current)

10. 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

11. So what do we know about customers...… and what is of value to them?

12. 62%31%Gen XBaby BoomersSilentGen Y - Millenials

14. Size of Home Purchased

15. Demograph Transfers31Average age of the First Time Home Buyer47Average age of Sellers

16. Is Real Estate Valuable?

17. 64%Percentage of listings thatwere derived fromrepeat clients or referrals67%Contacted only one agent Before selecting themas listing agent.

18. What “process” did they use?

19. How did they hire us?

20. What did they want from the process?

21. Disturbing trends?

22. “”The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.Peter Drucker

23. Baylor University Study, 50,000 REALTORS, 2009

24. There is nothing so useless as doing efficiently that which should not be done at all. Peter Drucker

25. Buyers between 18-44 using Social Networks daily in 200895%

26. 35% * REALTORS use social networkingat all, in 2009

27. 75% REALTORS never used a blog or podcast

28. But don't take my word for any of it….

30. Let’s look at consumer archetypes to determine what they value

32. Real Estate positioning:First time and move-up buyer population49% of new homes, 2006-2008

33. What constitutes their value set?Individualists, Competitive“Question everything, ” skepticsDistrustful of authorityPrefer / “Certain” in own beliefsInformation age mentality, skillsImage Conscious

34. The Value Shift$1.8016 ounces of actual coffeeIt’s hot

35. You look maaaahvalous….$3.834 ounces of coffee, 12 ounces of foamRequires special ordering languageLukewarm

37. It's happening just like they imagined it!

38. Gen X’ers Value what’s Behind the CurtainWhat they wantWebMD experience: Extensive, accurate, engaging Information on market/services before any consideratoin of personal authorityConsumer Reports level of Process TransparencyCustomized to individual needsThey must be “in charge” of the outcomes

39. Take a closer look at Gen Y

40. Gen YThe :We: Generation

41. Gen Y (Gen We) Critical Facts78 million U.S.; 2b worldwideReal Estate positioning:Significant portion of FT and move-up populations6 - 12 transactions lifetime

42. Gen Y (Gen We) Critical FactsWhat’s their value set?Group OrientedClose to Boomer parentsHighly structured livesConsume/d by entertainmentTechnology Normal (Integrated)

43. Millenials in Perspective

45. Technology is more than computers

46. Once again, science fiction becomes fact

47. What’s new is old…

48. What does the future hold for Millenials?

50. Social Networking = Mind Meld v 1.0Gen 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!

51. How to Connect with Gen Y’ersUse technology to establish relationshipsTether then to the process, but not to a computer (wireless)Decisions must be validated by the networkFuture luxury looks more like the rooms at the Encore than at the Ritz.

52. ?Now that we know more about the Zebra, how shall we catch it?