Issue link: https://read.dmtmag.com/i/441836
JANUARY 2015 20 THE JOURNAL Ask Eddie BY ED HICKS DEVELOPMENT MARKETING Is there a difference between selling m/h to seniors vs. family buyers? Russell P. Ocala, FL. Yes, there are considerable differences. So, what are they? First, listen to what your prospect is telling you, keeping in mind . . . Most of all, these days, providing financing for family buyers is critical to effective sales, whereas seniors will often purchase their homes for all cash, or will add substantially large down pay- ments, and frequently have good credit. Shorter term loans are not usually a problem for seniors buyers; as compared to family buyers who often have a problem with the shorter terms and higher interest rates for in-community homes. The placement or location of an existing pre- owned home, whether it is within a community or on a separate individual privately owned homesite usually in a rural area, may be very important. Senior home buyers are usually not as interested in issues such as home value appreciation, or being close to schools, but tend to like locations which are near natural amenities: lakes, mountainous areas, and the seashore. On the other hand, for a family buyer, the location and perceived quality of the school, and access to employment centers are very important. When seniors are buying a home within a com- munity whether new or used, the amenities are usually very important. Newer, larger commu- nities tend to have all or a majority of multi-sec- tion homes, and offer more in the way of expensive amenities such as community centers, pool and lanais, spa's, controlled access gates, etc. On site parking although often the less de- sirable tandem format parking, as opposed to par- allel parking may be a characteristic of communities with narrower but deeper homesites. This inherent need for amenities has kept the de- velopment of new seniors communities from being built in recent years, because of their relatively high cost, especially when "amortized" over the earlier, smaller parts of "phased" community de- velopments. Still, the ongoing need for lower cost housing which is created by lower income seniors living on small pensions or social security payments, in many of the warmer climates has created a stable demand for older smaller, mostly single section homes which may be purchased for cash at low, low prices. When coupled with monthly rents in a land lease community, total living expenses for those on fixed incomes is attractive. Older, smaller communities often consist largely of single section older homes, which as used homes may sell for as little as $3,500 to $5,000 or more if newer, or less if older. Provid- ing for some utilities such as water, sewer and trash to be included in the rent is especially at- tractive. Electric service, natural gas (where available), phone and cable TV are usually billed directly to the residents. This lower cost housing demand often overcomes inherent feelings of liv- ing in a "trailer park", with all its negative con- notations. When purchasing a new home, seniors tend to look for features and options, which focus on the quality of the construction, and not so much on the "flash". In these circumstances, regional home manufacturers tend to focus their home de- signs and construction. For the younger buyers, there is a tendency to opt for larger homes to ac- commodate their children or provide for an in- home office, and to seek out features, which add "flash" to the home. Limits on loan terms limit the overall price structure, especially in commu- nities where installation, foundation, carports or garages, skirting or underpinning, or other acces- sory structures costs may be required. The senior buyers who are more likely to live in a larger land lease communities which is restricted to age 55+, tend to be more aware of the value that accessory structures provide the home and the community. However, there may be some limits on the loan size for these, which are a part of some lenders fi- nancing terms. In these cases, the purchase of a previously owned home, in a well-established community, which has a history of stable resale home prices, may be a seniors first choice. Seniors are often in a "downsizing" mood, which means they are not as interested in larger homes, as long as their needs are met with smaller, more compact floor plans. They used to be more interested in three bedroom homes or 2 bedroom models with a den or larger interior work space. More often than not, the husband and wife don't share the same bedroom or bath so floorplans which feature a "duplex" style interior with two bedroom/bath configurations may be of interest. And, seniors are more likely to live in a community where the lawns are mowed and main- tained, and/or snow is cleared from drives as a part of their rent or lease payment. Family buyers are not as concerned about these types of regular homesite maintenance issues. Family buyers almost always need larger sq.ft. and are not as interested in smaller homes. With limitations of 2 persons per bedroom, often the standard in communities, it will take a minimum of 3 and sometimes up to 4 bedrooms to accom- modate larger families. Designs which provide for a front and rear design, so the master bedroom is separated as far as possible from "clustered" bed- rooms in which children may sleep, is common. This however, can eliminate the popular front kitchen floor plans. Which ever the need is, it's important to ask a lot of questions from any prospective buyer be- fore suggesting a home, it's configuration, floor plan, pricing, accessory structures etc. I know that may seem to be a somewhat trite comment, but it is surprising to me how often so called pro- fessional salespersons fail to clearly hear the buyer's wants and needs before "ushering" them into a home they may or not want. Edward "Eddie" Hicks, lic. RE Broker, and Lic. Mortgage Broker has been a manufactured housing community devel- oper and industry consultant, retailer and home manufac- turer since 1963, and is currently the sales manager for a seniors Age 55+ m/h condominium homesite community in Central Florida: Hidden Harbor on Lake Harris. He may be reached at (813) 300-6150 and at easteddie@aol.com His websites are: www.mobilehomepark.com www.factory- builthome.com and www.fha207m.com T J