Most of your clients are probably baby boomers, and like many of the 76 million in that cohort, they are probably in better health and have more resources than their parents did at their age. Next year, though, the denizens of this demographic bubble will start turning 80, and their real estate needs will change with them.
When a person hits 80, the idea of downsizing and moving — either across town or across the country to be near children — can become less of a choice and more of a necessity. Think of it as a tipping point, when they and/or their children realize that staying in their current location simply may not be tenable.
To corner a healthy share of this growing and diverse market, real estate agents and brokers must learn the ins and outs of serving seniors who are downsizing, but who aren’t always enthusiastic about it. As a financial advisor, you can also add value if you can refer clients to agents who hold this expertise. Here are four things these agents should consider, which will overlap with some of your own client conversations:
1. Understand Family Dynamics
The children of seniors are planning for what may be necessary to avert future care challenges or crises. Meanwhile, their reluctant parents are often trying to retain control of their decisions. To ensure control is in the hands of its rightful owner, agents should frame relocation discussions around the goals, fears and concerns of their client — the homeowner. For example, begin with a question like, “If you could wave a magic wand, what would be the best possible living arrangement for this next chapter of your life?”
3. Acknowledge Physical Limitations
It’s important to realize that the older we get, the more likely we are to experience reduced stamina, chronic illnesses and mobility limitations. These realities can affect the home-selling process in ways that agents may overlook. Consider the older adult homeowner with severe arthritis and no family support who resigned herself to staying in an unmanageable home because two agents told her she needed to “tidy up” and make “cosmetic updates” before listing. The agents should’ve offered to connect the client to professionals who could assist her with downsizing and home repairs, and it would be good for you to also get to know some of these sources.
Don’t underestimate the emotions that come with all the memories and belongings someone may have to leave behind. This is where patience and understanding are required. An agent may have to help a client let go, walking them through a house, saying good-bye to particular rooms and particular memories. What feels unimportant or irrelevant may be the key to convincing a reluctant seller to move forward.
4. Become an Expert on Senior Living Options
So many considerations go into finding the right living arrangement for someone considering their “forever home.” This is particularly true when healthcare is part of the equation. Agents with the knowledge and willingness to assist older adults with researching and making informed decisions about retirement community options, beyond those in their local MLS, will have an edge when it comes to earning the business of older adult clients.
To serve longtime homeowners, it takes more than just holding a real estate license. It requires skill, empathy and understanding. Start now to prepare for the next generation of 80-somethings.
