What Ann Arbor Baby Boomers Want

Look at findings from NAR’s 2006 research report Baby Boomers and Real Estate:
Today and Tomorrow, based on a survey of 1,969 adults born between 1946 and 1964.

Top 5 things baby boomer buyers want from you:

1. Represent my interests and coordinate with other parties involved in the process (23%)
2. Manage the closing process from start to finish (14%)
3. Explain all contracts, forms, and agreements (14%)
4. Negotiate on my behalf (11%)
5. Provide advice on critical issues throughout the process (7%)

Top 5 things baby boomer sellers want from you:

1. Help establish the right asking price for my home (17%)
2. Represent my interests and coordinate with other parties involved in the process (14%)
3. Show my home to potential buyers (12%)
4. Explain all contracts, forms, and agreements (8%)Manage the closing process from start to finish (8%)Screen and prequalify buyers (8%)Negotiate on my behalf (8%)
5. Advertise my home in the media and on the Internet (7%)Common misconceptions about baby boomers

They’re rich. When describing their financial situation, 54 percent of respondents said they were either “just making ends meet” or “having financial difficulty”; 4 percent described themselves as “well off”; and 43 percent said they were “comfortable.” (Percentages total more than 100 percent due to rounding.)

They’re self-absorbed. It’s been called the “me” generation, but baby boomers clearly think of others: 42 percent expected to pay at least some college costs for kids or grandkids; 35 percent said it’s important to leave a significant sum of money to family; 22 percent expected to help kids or grandkids with a home down payment; and 17 percent said it’s important to leave a significant amount of money to charities.

They have lots of buying and selling experience. Most baby boomers have at least some experience in the real estate market; 78 percent are home owners. However, the majority haven’t purchased a home in 11 years, and a hefty 48 percent of home owners have never put their house up for sale.

They’re old. Watch whom you’re calling old! The U.S. Census Bureau estimates that nearly half 47 percent of baby boomers are in their 40s, and 26 percent are 50 to 54 years old. Just 27 percent of baby boomers are 55 to 60 years old, the age range in which many workers start thinking about retirement.

What do they want to buy? Baby boomers who said they were extremely or very likely to purchase real estate in the next year indicated they would like to purchase the following types of property. Respondents could choose more than one type.

Primary residence (66%)
Commercial property (14%)
Land (26%)
Vacation home or seasonally occupied home (15%)
Rental property (19%)

When looking for market information, and interpreting data, call us for the answers at Real Estate One. Each team member of Kathy Toth Team previews about 200 homes per month in the Ann Arbor market place. You can also tune in to the monthly podcast to hear updates at http://www.talkrealty.com/kathytoth/audio/player.htm.