*CHANGE YOUR FOCUS

FC Tucker Real Estate

Buddy West…Wilmington, Delaware

*MillennialsCracking the Code

*WHAT WE WILL COVER

*Facts about Millennials

*Demographics…national and local

*Road Blocks

*Motivators

*Lead Generation / Marketing

*Do’s & Don’ts of Selling to Millennials

*Features & Designs

*Buying a Boomer’s house

*FACTS

*Born 1980 – 2000 Ages 14 – 34

*Over 90 million strong, 80 million over 22

*We are within 6 years of a massive purchase

*Most educated segment ever 55-45 women

*Gallop Poll:

*14% 24-34 live with parents.

*51% pursuing higher education & living at home

*70% 24-34 single and living at home

*FACTS

*30% live on own

*12% of married 24-34 live at home

*46% of married 24-34 on their own

*Unemployment rate 16% or double national avg.

*Over 60% are not working in their field of study

OTHER FACTORS

Poor job prospects; Availability

*FACTS

*Tuition 1980 $3000+ 2020 $9000+

*Pell grants dropped from 69% in 1980 to 34% in 2010. We have gone from a grant base to a loan base.

*Personal debt increased by 40%

*BHG Study

*Despite these road blocks, over 70% still believe in “The American Dream. They also believe that homeownership is the biggest indicator of success.48% are planning to invest in real estate in the next 3 to 5 years.

*FACTS

*Millennials are obsessed with research

*They grew up with technology & connectivity

*Committed to results & efficiency

*Love to laugh

*Procrastinate better than most

*Quick to influence peer groups

*Optimistic. Pay bills & have fun

*Politically Independent & may create a 3rd party

*Gallop

*TRENDS

*Risk Adverse.. tough job market, light wallets, they believe luck plays a role in success.

*Offer incentives in social media to capture their attention based on them re-tweeting you.

Want Answers immediately. No BS, clear action steps & quick answers. Offer reasons to take the next step without pressure.

Cautious; Entered the workforce in a weak economy & manage their money carefully

*DEMOGRAPHICS

*Nationally 80 million strong to over 90. Like urbanization with amenities. Walkability, bicycling, restaurants and social meetings

*Now starting to branch out into the “burbs” as long as they have the amenities required to grow their life.

*Healthy living, good schools and fun top their list

*1 out of 7 have incomes of $100,000 or more

*INDIANAPOLIS AREA

*Dated shopping malls are being replaced by mixed use market & living centers

*Parks, hiking trails, bicycle paths athletic fields recreational facilities are important

*Indianapolis weekly April 2013 Monon Trail traversing Carmel and Westfield and many other communities surrounding “Indy” Great selling feature

*INDIANAPOLIS

*Approximately 205,000 18-34 yr olds

*Surrounding suburbs an additional 200,000 including, Meridian Hills, Carmel, Fishers, Whitestown, Noblesville, & Geist (ICOC)

*According to CRS Magazine April-May, Indianapolis ranked # 3 as best places to live in the USA.

*Forbes ranked it in the top 5 for 5 years

*MOTIVATORS

*They like accomplishments, CRS, GRI, MilRES

*Integrity is a must or you will loose them quick

*They flock toward agents who are tech savvy

*ROADBLOCKS

*There are many roadblocks that face today’s millennium buyers. This was common with boomers during the late 80’s and early 90’s. We as Realtors® need to focus on how to make homeownership possible.

*Huge debt Trans Union says avg score is 628 with revolving credit of $23,232

*Tuition payments $29,400 up from 23,450 in 2008

*DO’S & DON’TS

*DO Keep it short and sweet..era of tweets

*DO maintain a comprehensive online presence and use it as your base camp

*DO cultivate a laid back presence, under promising rather than overstating

*DON’T try to be someone or something you aren’t

*DON’T play know it all. Positioning yourself as the only expert will backfire. They will use blog, face book, and You Tube to become informed

*REAL LIFE

*Erin and Scott Dowling Settled 5.30.14

*No kids, purchased 4500 sq ft $600.000

*Face to face- 4 times including settlement

*E-mails- 86 (sent and received jointly)

*Test messages- 60

*Referrals (so far) 2

*Note- Ask how they would like to communicate

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* 1. Connecting On-Line - Discussion Groups and Forums

3.

4.

* eyejot

*ADVERTISING/MARKETING

*Slate Magazine gets it. Check out their FB page. News Media Website directed to millennials.

*Slate is the preferred format for getting information

*They shop on line before shopping in a store and only if they need to go to a store

*Amazon’s targeted millennials successfully

TRADITIONAL MARKETING&

ADVERTISING

NOT …

TRADITIONAL MARKETING & ADVERTISING

ADVERTISING CLUTTERMEDIA FRAGMENTATIONCONSUMERS TUNED OUTLESS EFFECTIVEMORE EXPENSIVELESS TRUSTEDLOWER ROI

ONLY 18% OF TV ADS GENERATE POSITIVE ROI

ONLY 14% TRUST ADS

69% Seek Ad Blocking

Technologies

29

Cre

ati

ng B

UZ

Z

30

*The Role of 90-10

90% = Choose service provider based on trust, likability, competence, etc.

10% = Choice based primarily upon cost

31

LAW OF FEW

10% INFLUENCE PURCHASING BEHAVIOR OF

OTHER 90%

32

91% LIKELY TO BUY ON RECOMMENDATION

33

92% PREFER WOM RECOMMENDATION

Networkingvs.

Connecting

*BOOMERS HOOKING

MILLENNIAL BUYERS

*Huge boomer sell off coming in 4-6 years 1.5 to 5 million homes per year by 2018 to 95 million perspective buyers

*Many homes not ready to attract buyers

*Opportunities abound for the agent

*Attracting the buyer

*Shell out some bucks to appeal to the millennial buyer. They are looking at HGTV to see what they want.

*$15,000 can yield twice that. “Ilyse Glink”

*Use modern colors and furniture

*Make the home an emotional buy for them

*INS & OUTS

*In: Granite Out: Formica

*In: Media Room Out: Living Room

*In: Home Office Out: Dining Room

*In: Great wireless Out: Dead zones

*In: Bold Colors Out: Neutral walls

*In: Hardwood Out: Carpet

*In: Stainless Steel Out: Dated appliances

*ADDITIONAL FACTORS

*Walkability

*Public Transportation

*Near Parks / recreation areas

*Social areas, restaurants, movie theatres

*Schools

*SOLUTIONS

*Visit nearby homes for sale and see how yours compares

*Hire a home stager NOTE: most younger buyers don’t have imagination when they walk into a home with outdated stuff)

*Cards saying this room could be….

*Repaint walls to add zing

*Pull up carpet and freshen up kitchen

*One size does NOT fit all!

*Lifestyle considerations

*Generational considerations

*Behavioral styles

D

Dominant

Direct

Determined

Demanding

Decisive

CCautious

Calculating

Conscientious

Contemplative

I

Influencing

Inspirational

Interactive

Interested in People

SSteady - Stable

Supportive

Status Quo

Shy

* Outgoing (Fast Paced)

Reserved (Methodical)

Task

O

rien

ted

Peop

le O

rien

ted

Power

Procedure

People

Predictability

42

*2. Go Three Deep:

1.Why?

2.What?

3.Can you Explain?

*. Words and Music

*The Home Buying ProcessInterview

Tour Communities

Pre-Approval

Deliver Papers

Home Selection

Reports

Write Proposal

View Homes

Moving Day

Make Selection

Offer Presented

Termite

Verifications

Credit Report

Discuss Strategies

Inspections

B

Rejection Approval

Seller Notified

Home Inspection

Mortgage Co

Underwriting

Negotiate Offer

Appraisal

Loan Approval

Title Company Title Search

Earnest Money

Contract Accepted

Assemble Papers

Settlement

B

*Home Selling Process

MARKET RESEARCH

LISTING SIGNED

OFFICE

MULTIPLE LISTING

CONTACT PROSPECTS

SHOWINGS

OPEN HOUSE

OFFER RECEIVED

OFFER

CONTRACT ACCEPTED

INSPECTIONS

BROKER’S TOURGRAPHICS OFFICE TOUR

MLS COMPUTER MLS MEMBERS

TRANSACTIONPROCESSING

NET SHEET

COUNTER OFFER

EARNEST MONEY

MLS TOURS

BEGINPROCESS

*Contract To Close

PROCESSING

MORTGAGE CO. CREDIT REPORT APPRAISAL

LOAN APPROVAL

UNDERWRITING VERIFICATIONS

TITLE CO.

ASSEMBLE PAPERS

SETTLEMENT

HOME SOLD

REJECTION

TRANSACTIONPROCESSING

“The minute real estate listings went online was the minute that it was no longer sufficient that a real estate broker merely had information about real estate listings.”

Seth Godin

*All businesses & professionals must

compete In two major ways 1.Positional

advantage

2.Capability advantage

*The ACT Methodology

CONVERT

TRANSFORM

ATTRACT

RAVING FANS

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TWO THIRDS OF U.S. ECONOMONY DRIVEN

BY WOM

BRAND ADVOCACY DRIVES BUSINESS GROWTH

Harvard study

BRAND ADVOCACY EVEN MORE IMPORTANT THAN BRAND IMAGE OR BRAND

SATISFACTION

Harvard study

BRAND ADVOCATES

AVERAGECUSTOMERS,CLIENTS,CONSUMERS

BUZZ = INFECTIOUS CHATTER

WHAT’S HOTWHAT’S ATTRACTIVE

11-12 intimate contacts150 social contacts500 – 1,500 weak ties

56

BIRDS OF A FEATHER FLOCK TOGETHER

The term homophily stems from study of social networks.

HOMOPHILY

BIRDS OF A FEATHER FLOCK TOGETHER

CLUSTERS

Interests hobbies beliefs age gender social class ethnicity

religion values politics geography education occupation

CLUSTERS