ERA Real Estate announced
in 2005 the results of its annual survey of mature consumers on their opinions
toward real estate and the home buying and selling process. The survey of more
than 1,500 people, age 50 and older, revealed changing attitudes about real
estate that contradict some long-held assumptions.
It was often believed that
the typical aging homeowner was looking to move to an active adult community
and downsize, but survey results show otherwise.
- Only 8 percent of those
considering a move in the next five years indicated that they might consider
purchasing a home in an active adult community - More than 61 percent
consider purchasing a single-family home - The average senior lives
in a house with three or more bedrooms and two or more baths - Only 11 percent felt
their current home is too big - Nearly 25 percent of
respondents thought their home was too small - Respondents cited better
home or living conditions as the second most popular reason for buying a new
residence
Seniors also proved to be
more savvy and demanding when it comes to technology. In fact, those considering
moving in the next five years chose the Internet as the most popular home buying
research method, up from the second most common choice mentioned in study the
previous year. However, while mature consumers showed an increased propensity
for the Internet to search for real estate information, nearly 92 percent said
they were only somewhat to not at all likely to choose a real estate agent based
on Internet research. This may be due in large part because the survey showed
an existing relationship with a broker or real estate agent was still the second
most popular method for researching real estate.
« These survey results show
that as more and more baby boomers turn 50, it is becoming harder to define
the increasingly diverse mature consumer, » said Brenda W. Casserly, president
and COO, ERA Franchise Systems, Inc. « Marketers today need to recognize the
importance of understanding the many different concerns, wants and needs of
these mature consumers to ensure they provide resources and services that are
relevant and valuable to this growing market segment. At ERA Real Estate, we
have set out to be the real estate company of choice for this powerful and under-served
consumer. »
The ERA Real Estate survey
also showed some interesting findings regarding mature consumers’ level of concern
for some common economic costs. Despite a historically strong real estate market
that has seen continued price increases, more respondents expressed greater
concern over prescription drug costs (62 percent), hospital-related costs (60
percent), income and other taxes (59 percent) and gas prices (56 percent) than
they did over the price of houses (43 percent).
This survey represents the
latest in an ongoing series of initiatives by ERA Real Estate to monitor and
address the concerns of the growing mature consumer market. These efforts include
the ERA® Sellers Security® Plan, a sales program that offers sellers a guaranteed
sale price and closing date, a customized and personalized marketing approach
that meets the needs of mature consumers as well as a variety of targeted services,
resources and financing options. As the first global real estate franchise to
deliver the Seniors Real Estate Specialist (SRES®) designation to its affiliates
online, the ERA system is also committed to educating its sales professionals
about the specific needs and concerns of mature buyers and sellers.
Other interesting findings
revealed from the ERA survey of mature consumers included:
- Respondents named « one
point of contact » during the transaction process as the service they are most
looking for from a real estate agent - Nearly three out of four
respondents own their own home - Nine out of 10 have owned
at least one home in their lifetime, while nearly two-thirds have owned two
or more homes - The majority (53 percent)
of respondents have lived in their current residence for 10 years - 57 percent of respondents
would prefer to stay within 50 miles of their family during their next move,
while a surprising 16 percent would consider a move of 1,000 miles or more
- Nearly one quarter of
respondents have children living with them or who are receiving financial
support - Virtually all respondents
(96 percent) own a personal computer - Three out of four respondents
own a DVD player and a cell phone - Respondents ranked both
in-depth property descriptions and photos or virtual tours as the most important
factors when searching for real estate online
InsightExpress, a professional
market research firm headquartered in Stamford, Conn., conducted the survey
on behalf of ERA Franchise Systems, Inc. ; More than 1,500 consumers, age
50 and older, were polled online for the survey.
About ERA Franchise
Systems, Inc.
ERA Franchise Systems, Inc. is a global leader in the residential real
estate industry with more than 30 years experience in developing consumer-oriented
products and services. In 2005, J.D. Power and Associates ranked ERA Real Estate
« Highest Overall Satisfaction For First Time Home Buyers Among National Full
Service Real Estate Firms. » The ERA® real estate network includes approximately
33,200 brokers and sales associates and more than 2, 600 offices throughout
the United States and 30 other countries and territories. Each office is independently
owned and operated except offices owned and operated by NRT Incorporated. ERA
Franchise Systems, Inc. is a subsidiary of Cendant Corporation (NYSE: CD) and
part of its Real Estate Franchise Group. ERA® information is available to consumers
at ERA.com. For additional information about ERA Franchise Systems, Inc. as
well as expert commentary on emerging trends in the real estate industry, visit
the Cendant Media Resource Center at http://www.cendant.com/media/.
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