Smart Realtors Focus on Baby Boomer Needs
Home equity rich seniors represent significant opportunity for well-versed realtors
Baby Boomers. Smart realtors will do well to focus in on this swelling demographic. The second largest generation in our history represents more than 25% of the residential real estate market. Boomers have accumulated between $6 – 8 trillion (Reasons why Baby Boomers are a Market to Watch, Dave Lowman) in home equity.
Many are looking for ways to access their hard-earned equity hoping to finance another move, for medical expenses or other needs. As baby boomers approach 62+ most are concerned whether they’ve saved enough for retirement.
Realtors can capitalize on the equity rich demo that cites its number one reason to move as “to be nearer to loved ones” (2018 NAR Home Buyer and Generational Trends). Building a healthy clientele where word-of-mouth and referrals rule can be lucrative. But savvy agents will need know-how to do so.
Some agents shy away from the senior market citing a bit longer sales cycle. However, it’s possible to bring the senior seller-buyer cycle in line with that of millennial movers.
Willing realtors with a heart for seniors will do their homework to ‘get’ the senior market. Good agents will be offer solutions to their baby boomer sellers and buyers. Like any demo, seniors have unique needs and options to meet those needs.
Notably, the new home conversation with baby boomers will be about more than how many beds and baths, or if there’s a two-car garage and garden space. Seniors are concerned about long-term financial health. And, they want to know how moving plays into their retirement equation.
“Seniors will benefit by working with an agent who is conversant about their unique financing options,” said Dan Harder, Senior VP, 1st Reverse Mortgage USA.
“We know realtors and builders doing tremendous business helping seniors because they are able to discuss the benefits of a Home Equity Conversion Mortgage (aka Reverse Mortgage) for Purchase (H4P).
Some of those benefits for qualifying senior homeowners 62+ include:
- Greater Purchasing Power
- Zero Monthly Mortgage Payment Joy *
- Funds for medical expenses and/or home improvement
- Possible tax-free growing line of credit
- Ability to relocate to a more desirable home or location
As more than 10,000 citizens turn 65 each day, the senior market is growing exponentially.
“We’re in the third decade of the federally-backed HECM program. As anticipated, and given the sizable equity many seniors have, reverse mortgage is fast becoming a mainstream financing option,” said Harder.
1st Reverse Mortgage USA, a Division of Cherry Creek Mortgage, has been helping seniors for more than 15 years.
“We’re extending an invitation to realtors to partner with us. We offer comprehensive, concise training and materials for agents with a heart for helping seniors understand the benefits of Reverse Mortgage. Together we can help seniors make their next move … with confidence,” said Harder.
* No more monthly mortgage payments. Borrowers must maintain the property and remain current on property taxes, homeowner’s insurance and applicable HOA dues.