The Importance of Relating

Well to Younger Home Buyers

In Orange County, California, most Realtors® (the majority being in their 50s) know pretty well how to relate to homebuyers who are approximately their own age and even older boomers (1944-1962)

But what about relating to the younger homebuyers…the Gen X and Gen Y gang, those born 1980-1990?  The ones who are often our Orange County First Time Home Buyers. Studies show that these First time home buyer consumers, who have considerable spending power, are confident, often risk-taking, may favor entrepreneurialism over a “safe” job, and are prone to taking more risks than the boomers did (whose parents may have lived through the depression of the 30s).

Lucky for them, the government is offering First Time Home Buyers a special and generous home buyer tax credit:

Frequently Asked Questions About the Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. http://www.federalhousingtaxcredit.com/2009/faq.php. You SHOULD go here because it really does answer everything about the First Time Home Buyer Tax Credit.

If you, as an Orange County First Time Home Buyer have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.

Because they grew up during the information age, youths want everything now, now, now.  They want answers now!  And if a Realtor here in Orange County cannot provide answers fast enough, they may go to another agent.

Today, nearly 80% of homebuyers go to the Internet to find homes and real estate agents.  And you can be sure that the Gen X and Gen Y folks are well represented in this group.  Using a computer or the Internet to them is as familiar as boomers driving a car.  However, this group may be weak when making key decisions about construction or remodeling budgets, choosing the right builder, scheduling construction benchmark completion dates, creative financing and other somewhat detailed or esoteric considerations.

Here in Orange County, California, Gen X and Gen Y members buy much Orange County real estate because North County has older more established communities with lower home prices, and South County has more elevated prices, thus any pocketbook can be accommodated.

What?  Are Gen X and Gen Y folks really shelling out nearly a million dollars for a home?  Well, they almost have to here in upscale Orange County, California, where home prices have escalated some 40% over the past three years.  In fact, homes in South Orange County even went up about 6% in 2006.  Note that this happened when real estate in most of the rest of the country hardly appreciated at all, or, in rust belt and auto-related states, actually diminished in value. 

And remember that the boomer parents of X- and Y-ers were prodigious savers, taught from youth and the experience of hard times, to conserve, save, invest, pay off mortgages, retire with pensions, put away money for a rainy day, and …be sure to have a good life insurance policy.

As a result, their kids and their kids often inherit a considerable sum upon the parents’ demise---plenty of money for a good down payment on a home with a nice sum left over for a solid investment.  Here is an opportunity for a smart Realtor to bone up on the very concerns that these two groups of young people will have when buying a home.