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No Surprises |
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Serving Young BuyersYoung buyers have different expectations than their parents. Builders who want to capture this market must take time to understand and cater to those expectations.Builders have been flooded with information on the wants and needs of baby boomers and Generation X during the past few years. But what about the next generation? The majority of them are in their 20s and now entering the housing market. While they want many of the same products in their homes as do their parents, their expectations about those products tend to be higher.
Twenty-somethings have also grown up with more exposure to high style and design than their parents. With entire TV channels devoted to home design (there's one show just about paint), they're already aware of most of the options that builders offer. They are also very willing to invest in those options if the value is demonstrated to them. "They're willing to spend the money for something they think brings value, but you have to show them why," says Jeffrey Burton, whose company, American Dream Development in Junction City, Kan., sells primarily to young military families. Young buyers warm up quickly to green products. These include ENERGY STARSM-rated appliances, tankless water heaters, low-volume flush toilets, water-saving shower heads. Even conventional materials may qualify: For instance, a builder can do well by offering floors made from sustainable wood products or carpets manufactured using environmentally sensitive methods. As for the buying experience, these buyers are adept at online research — so give them an interactive Web site where they can play with colors, styles and configurations; learn about product features; read warranties; and calculate costs. Tell them what each selection will add to the monthly payment so they can see how easy it is to include their favorite features. Speaking of costs, most young buyers don't have much money for a down payment, much less upgrades, so it's important to control option prices. "It's easy to drive that young buyer out of the options market," Burton says. "If the cost of granite countertops goes up from $3,000 to $5,000, you've probably lost 60 to 70 percent of these buyers." One area where young buyers aren't as savvy as their parents is understanding the long-term impact of their choices, says Burton. They tend to want to load up the house with "cool stuff" that may wind up hurting them in the long run. "We try to guide our younger buyers away from putting more into the house than they will get out of it," he says. "We spend a lot of time on education, and try to inform them when they're pushing the appraisal and limiting resale. Our margins are probably better on that cool stuff, but to let them put in lighting and a sound system — and nothing else — would be irresponsible."
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