First Time Home Buyers Skipping Starter Homes

July 27th, 2016 by

According to research from Bank of America, 75% First Time Home Buyers are skipping starter homes. Instead, they are buying homes that meet their long-term needs.

What does that mean for marketers?

Select the right prospect

From a prospect perspective, that means we are looking for a more affluent first time home buyer. One with good credit and the ability to put down a sizeable down payment.

Real Estate agents, home builders & mortgage companies need to carefully target their prospects and use the Dataman Group First time Home Buyer list, which is modeled to find the right buyers for these properties.

Get the message right

More than 35% of these first time home buyers say the home they are buying is one they expect to live in until they retire.

Marketers should consider this when selecting an appropriate offer to entice first time home buyers to come to them for either a mortgage or a tour of a given property.

Remember, first time home buyers are not simply renters. They are the key group marketers should spend their advertising dollars reaching out to. Most of them are millennials. And we are moving into a period where this cohort will be a huge group of real estate and home buyers.

Yes, these buyers are skipping starter homes….which means the message needs to be adjusted and tweaked for this particular group.

Use the best marketing channel

Direct mail is the only marketing channel guaranteed to reach every first time home buyer prospect. When it comes to being important, direct mail outweighs all the other channels. It is reliable. It is trustworthy. In fact, most people rank it the highest marketing channel in terms of credibility.

Direct mail also has a long shelf life. A postcard will sit on your desk way after that email has been deleted.

Marketers also need to consider blending their direct mail with other media channels marketing campaign multiple touches. When your prospects sees and hears your message from more than one source, it becomes more important. And, more memorable.

 

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