DOES A FIRST HOME BUYER KNOW WHAT TO BUY?

3 thoughts worth considering

A report in this morning’s Financial Review suggested that most first homebuyers don’t know what to look for when purchasing a new home

I would argue that most home buyers are conscious of this fact and as a result approach the purchase process with a level of fear and trepidation

Further, as houses become less and less affordable the degree of trepidation will grow

It occurs to me that there are three important things vendors of first home buyer product need to do:

  • Define and understand the market
  • Develop appropriate product
  • Engage and support prospects

What is a first home buyer?  There was a time that first home buyers were 20 year old newly- weds. Today, first home buyers need to be defined psychographically rather than demographically. They are people with a common mind set, not a common age, gender and lifestyle stage –  and it is a significant advantage to understand this mind set> you cannot pitch product or marketing efficiently to a market you don’t understand

If we accept that first home buyers are best defined psychograpically and we determine that definition we are better placed to understand them in a way that enables us to develop product that specifically addresses their needs. There has been all too little innovation in the first home buyer sector in the last 20 years. The market has changed radically and the environment has changed enormously while the product has changed little

If first home buyers are less informed as the Financial Review article suggests then they almost certainly need more assistance. They need someone to hold their hands and give them the confidence they lack. From the vendor’s perspective, it is not appropriate to treat them like any other home buyer. They need more and will respond to more

For many builders, developers and real estate people psychographics are a mystery. Many still think in terms of demographics. Psychographics are however so much more relevant and potent. They are one of the secrets to the success of organisations like Apple and should be given a much higher priority by venders of first home buyer product. Focusing on psychographics will reduce marketing costs, lead to superior product and boost sales

Am I wrong??

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