Converting Empty Nester Leads: 5 Tips for the Savvy Real Estate Agent

Who are empty nesters? In general, the term is used to describe parents whose children have grown up and left the house. Today’s typical empty nester falls into the generation called baby boomers: those born between 1946 and 1964. At the upper end, you have people in their late 60s who remember when TV was a luxury — with programming limited to a few hours on only two networks — and many household telephones still subscribed to party lines. In their late 20s and early 30s, about the age this group began considering owning a home and starting a family, the median sale price of a new home in the U.S. was around $39,850 (per the U.S. Census Bureau). Today’s leading edge baby boomers may be retired or semi-retired, and have a workable understanding of technology and the Internet: They can post to Facebook, but struggle to troubleshoot their laptop’s wireless issues.

At the lower end of the boomers are those who celebrate the big 5-0 this year. They can tell you why the Walkman was so revolutionary, who shot J.R., and where they were when the Berlin Wall fell. If they purchased their first home close to the age of 30, they paid a median sale price of $130,000 for it (again, from the U.S. Census Bureau). Today’s youngest boomers text nearly as fast as they type, take it as a given that their car features Bluetooth, and are savvy enough to access social media on their mobile devices.

Here are five tips to help you better understand empty nesters — wherever they fall on the baby boomer spectrum — and successfully convert them to clients.

1. Tailor your communications

Empty nesters at the upper range appreciate the personal touch versus the digital one, so reach out by phone or even personal notes. Younger boomers are probably more receptive to texts and emails. Do your homework. If you’re not sure what type of communication will work best, just ask. Make sure you know enough about your clients to appropriately and effectively communicate the right information to them in a way that best meets their needs.

Also remember that baby boomers were the first generation to be aggressively segmented and marketed to. They were born and raised amid information overload, so keep your communications clear, concise and pertinent. Don’t waste their time with homes you know won’t work for them.

2. Turn a worry into a “why not?”

Boomers have typical worries about the financial, social and physical aspects of getting older. If they are considering investment or rental properties to supplement their current income or retirement nest egg, take the time to educate them on exactly what that will entail. For example, they may have to keep their paying jobs to save up for the down payment and be able to obtain financing to purchase properties. Or maybe a property isn't as close to rental ready as thought at the time of purchase, and there is more fixing up to do before tenants move in. Helping prospective clients understand exactly what goes into being a real estate investor positions you as their local expert.

If your clients want to downsize, illustrate the benefits of smaller digs: less time and money spent in maintenance, reduced heating and lighting bills, and possibly the chance to leverage their home equity, purchase the new home and pay off the mortgage.

As rental properties often require a few years to begin paying off, your pitch may appeal more to empty nesters on the lower end of baby boomer age rather than those on the upper end who may be looking for a quicker payoff.

3. Show them they can keep active — physically and socially

Plenty of empty nester clients maintain a good level of physical activity, so when they look to downsize, pique their interest with condos and single-family homes that are closer to downtown. There, pedestrian-friendly neighborhoods offer shopping, dining and entertainment within walking distance — or by abundant public transportation — that enable empty nesters to enjoy a rich social life while staying physically active.

4. Get behind what they support

Earlier in life, your baby boomers may have dabbled in a hobby or considered a second career, and now see their empty nest situation as an opportunity to redefine the purpose of their home. According to BabyBoomer-Magazine.com, this generation has more discretionary income than any other age group and may have even more so now that the kids are out of the house.

Show your clients homes where a third bedroom can become a den or a home office, or interest them in properties they can turn into “studios” and explore things they never had the chance to when the house was dedicated to raising kids. Your showings could include homes with gourmet kitchens for budding chefs, and workrooms or ateliers to explore an artistic side. For those who plan to spend more time with the grandchildren, offer homes that are more accommodating and entertaining for those younger visitors.

Gain visibility with empty nesters by advertising, sponsoring or attending events in the organizations to which they belong. These might include golf courses, community or senior centers, hobby groups, activity clubs and special interest associations.

Make a further connection by sponsoring or donating to organizations these empty nest clients spend their money and volunteer their time to support. Depending on what their interests are, these could include senior activity centers, local booster clubs, museums, youth organizations or animal rescue groups.

5. Understand the new household

With the growing trend in multi-generational living, the empty nest may actually become a crowded nest. As increasing numbers of millennials (also known as Generation Y, born between the early 1980s and the early 2000s) move back in with mom and dad because they can’t afford a new home, more baby boomers are moving back in with their parents, also due to financial hardships. These empty nesters may actually want to upsize rather than downsize.

Once you identify the new dynamic facing your empty nester, you should be able to expertly discuss how to meet their needs, whether that discussion includes split-levels, basement suites, guesthouses, or other dwellings designed to accommodate multi-generational living.

You should also be familiar with neighborhoods where health care is nearby for the elder housemates, if necessary, or where commerce and industry is within commuting range to help the younger residents.

When their children leave home, empty nesters may question their new role, purpose and direction. If they’re speaking with you, they’re taking the first steps to embrace the change in their household. You have the opportunity to help them redefine where and what they call home.