How To Target Clients Who Are Downsizing: Real Estate Tips For Brokers And Agents
The National Association of REALTORS® reports that 26% of homebuyers are downsizing each year. Additionally, 64% of retirees have considered downsizing, and 41% believe they will downsize in their next move.
Downsizers are an excellent market to target because this group represents a stable, motivated, and lucrative market segment.
By understanding their needs and the unique opportunities they present, you can build a strong pipeline of leads and long-term clients.
Whether you’re a real estate agent or broker running a business, targeting downsizers can be highly profitable.
In this article, we’ll discuss how you can target potential clients who are downsizing and see success in this niche as a real estate broker or agent.
Understanding the Downsizing Client
To serve downsizers effectively, you must understand their unique needs and motivations.
Downsizing clients are often navigating a significant life transition. Financial considerations, lifestyle changes, and housing market conditions influence their decisions.
Below are some aspects you need to understand about this demographic:
Downsizers want to save money: Many downsizers are aging baby boomers and Gen Xers who are empty nesters seeking to reduce the expenses related to maintaining a larger home. This includes everything from general upkeep to property taxes. Moving can lower these costs, and you should emphasize that your properties offer financial benefits.
Lifestyle needs often drive their decision: Downsizers seek homes that align with their evolving lifestyles. This could include properties with fewer maintenance demands, single-story layouts, or amenities that promote convenience and accessibility. You should highlight open floor plans, walkability to local services, or proximity to family and healthcare facilities.
The real estate market can impact downsizing plans: The state of the housing market plays a significant role in a downsizer’s decision-making process. In a seller’s market, downsizers can benefit from high demand and potentially sell their larger homes at a premium. However, in a buyer’s market, they might face challenges securing a smaller space at a reasonable price.
They often look for turnkey properties: Many downsizers prefer a living space that doesn’t require extensive renovations or repairs. This aligns with their desire to save money and avoid the stress of managing a home. Real estate professionals should prioritize showing move-in-ready properties with minimal required updates.
Emotional factors play a role: Downsizing often involves leaving a home filled with memories of family members and shared moments, which can be an emotional process for clients. Real estate agents and brokers need to approach these transactions with empathy and patience.
6 Ways to Target Downsizers Seeking a Smaller House
Now that you know more about downsizers, let’s unpack some practical ways you can target them and attract more paying clients:
1. Create a targeted marketing strategy
The first step is to create a marketing strategy that specifically targets downsizers and their needs.
Identify downsizing-friendly communities
Focus on neighborhoods or developments that cater to downsizing needs.
These include areas with single-family homes, condos, or retirement communities with amenities like security, fitness centers, and social clubs.
Highlighting these features in your marketing materials can appeal directly to this audience.
Develop persona-based campaigns
More than 55% of companies generate higher-quality leads by using buyer personas, which are fictional representations of their ideal customers.
Create a buyer persona that reflects common downsizing profiles, such as retirees looking for maintenance-free living or professionals moving closer to the city for convenience.
Use these personas to design advertising campaigns that resonate with their specific pain points and aspirations.
Leverage social media and online advertising
Social media platforms, especially Facebook, are key to targeting downsizers. You can use targeted ads with messaging like “Ready to simplify your life? Explore these low-maintenance properties!”
Facebook ads have a return on investment (ROI) of up to 800%, making them a worthwhile investment for your business. In fact, 78% of baby boomers use Facebook, so it’s the ideal place to target downsizers.
Include visuals of appealing, smaller homes with practical features such as open floor plans, a small outdoor space, energy efficiency, or accessibility.
2. Create content that speaks to downsizers
The next step is to tailor the content you produce to the needs and interests of downsizers.
Educational blog posts
You could write and publish blog posts that directly address the concerns a downsizer may have, such as:
- “How to Declutter and Prepare for a Downsizing Move.”
- “5 Questions to Ask When Considering a Smaller Home.”
- “Top Communities for Downsizing in [Your Area].”
These posts position you as a knowledgeable and trustworthy resource while drawing potential clients to your website.
Virtual tours and open houses
Online videos have an audience reach of over 90% worldwide. Use video content to showcase homes that meet downsizers’ needs.
Walkthroughs of cozy homes, garden spaces, or condos with practical layouts can attract clients who prefer a visual overview before arranging in-person visits.
3. Offer tailored services
You also need to position your services as a real estate business to meet the needs and expectations of downsizers.
Downsizing consultations
Provide free or low-cost consultations to help potential clients evaluate their current living situation, discuss goals, and outline the process of finding the right home with less space.
Position yourself as a partner in their transition, not just a salesperson.
Collaborate with moving and decluttering services
Partner with local moving companies or decluttering experts to offer bundled services.
Downsizers often face the daunting task of reducing how much stuff they have. In fact, 60% of seniors say that they have more things they need. Providing a solution can make you their go-to real estate expert.
4. Build trust and relationships
You need to ensure your marketing efforts are designed to build trust and connect with downsizers.
Testimonials from successful downsizing clients
Over 90% of consumers are more likely to trust recommendations over advertising.
Highlight positive experiences from past clients who successfully downsized with your help. Testimonials are a powerful tool for building credibility and trust with potential clients.
You could publish testimonials on your social media channels, as videos on YouTube, or as reviews on your website.
Host downsizing seminars or webinars
Organize local events or online sessions on the topic of downsizing. Webinars specifically have a conversion rate of around 25%, making them an excellent way to generate downsizing leads.
Include practical tips, personal finance considerations, and real estate advice. These events can serve as a soft introduction to your expertise and services.
5. Use data and analytics to refine your approach
A data-driven approach will help you ensure you’re targeting the right people with your downsizing services.
Leverage demographic data
Analyze data to find neighborhoods or demographics with higher concentrations of potential downsizers.
For example, areas with aging populations or communities of empty-nesters might yield promising leads.
Monitor your campaign performance
Use tools like Google Analytics and Facebook Insights to track the performance of your marketing efforts to target downsizers.
Refine your strategy on which ads, blog posts, or emails generate the most engagement and leads.
6. Stay engaged throughout the process
It’s essential to remain patient and empathetic with clients who are downsizing, as the process can be emotional and complex.
Regular check-ins and follow-ups demonstrate your commitment and help build a lasting client relationship.
When clients feel supported and understood, they’re more likely to recommend your services to friends and family.
What Advice Should I Provide to Downsizing Clients?
You play a key role in guiding your downsizing clients through a complex and emotional transition. Providing tailored advice helps them navigate challenges, make informed decisions, and achieve their goals.
Below is some advice you can offer to your clients to ensure a smooth process:
Evaluate financial goals and opportunities
As mentioned above, downsizing clients often seek to save money, whether by reducing housing costs, freeing up equity, or cutting down on utility and maintenance expenses.
You should advise your clients to start with a financial assessment:
Set a budget: Help your clients determine how much they can comfortably spend on a new home after selling their current property. This includes factoring in closing costs, moving expenses, and potential renovations.
Maximize the sale price: Recommend strategies to boost the value of their current home, such as staging, minor upgrades, or timing the sale to align with favorable market conditions.
If your client is selling in a seller’s market, highlight the potential for maximizing equity gains and suggest ways to leverage that equity to secure a smaller, more affordable home.
Prioritize needs and lifestyle preferences
Downsizing is more than just moving into a smaller home; it’s about finding a property that aligns with your client’s evolving lifestyle. You should guide clients in identifying their priorities, such as:
Accessibility: For clients seeking aging-in-place options, suggest homes with single-story layouts, minimal stairs, or features like grab bars and walk-in showers.
Location: Help clients choose locations near amenities such as healthcare facilities, family shopping centers, or recreational areas.
Maintainance: Recommend properties that require minimal upkeep, such as condos, townhouses, or homes with smaller yards.
Understanding these preferences ensures you can help your clients find a home that suits their current and future needs.
Timing and housing market insights
The timing of a downsizing move can significantly impact the financial outcome. You should provide your clients with detailed market insights, including:
Sell first or buy first: Explain the pros and cons of selling their current home before buying a new one. Selling first can free up funds and reduce financial risk while buying first might be more convenient in a competitive market.
Market trends: Keep clients informed about current trends in the local housing market, such as inventory levels, interest rates, and buyer demand, to help them make strategic decisions.
You can also advise your clients to consider short-term rental properties if there’s a gap between selling their current home and finding the right downsized property.
Simplify their search for a new home
You should strive to streamline the home-buying process by narrowing down options to your client’s preferences and budget.
Focus on turnkey properties: Downsizers expect a hassle-free transition, so recommend move-in-ready homes that don’t require extensive renovations.
Emphasize energy efficiency: Suggest properties with modern, energy-efficient features that save money on utilities.
Provide virtual tools: Offer video tours or virtual open houses to allow your clients to explore their options, especially if they’re relocating to a different area.
Address long-term considerations
Downsizing isn’t just about your client’s immediate needs; it’s also about planning for the future. You should encourage your clients to think long-term in terms of:
Resale value: Help your clients select a property with strong resale potential in case their lifestyle or financial circumstances change.
Flexibility: Recommend homes with adaptable spaces that can accommodate future needs, such as a guest room for visiting family or a space for hobbies.
Community support: Highlight the benefits of neighborhoods with active communities, especially for retirees looking to build new social connections.
This foresight can help clients make a choice that serves them well for years to come.
Provide additional resources
To simplify the downsizing process for your clients, you can provide them with reliable resources:
Financial advisors: Suggest your clients consult with a financial planner to maximize equity gains or plan for retirement.
Local experts: Provide information about nearby healthcare providers, recreational facilities, or community events to help clients settle in.
Moving services: As mentioned above, you can recommend professional movers or companies specializing in downsizing moves.
Ensure Every Downsizing Transaction Goes Smoothly with Paperless Pipeline
Now that you’ve started landing downsizing clients, you need a way to ensure that every transaction goes smoothly.
You need robust transaction management software to make sure your deals close on time, every time.
Paperless Pipeline is a purpose-built transaction management tool that automates and streamlines the entire process, from listing to closing.
Our system is designed to help you meet every critical due date and milestone and close each deal successfully.
Visit our website to claim your free 14-day Paperless Pipeline trial to see how our software is the perfect tool to help you target downsizers.