Important Things to Know About the Psychology of Purchasing a House

The decision to purchase a home is obviously an important one but it might surprise you to know that many buyers are swayed by considerations other than price, resale value and location. From the house number to the colour of the paint, it seems home buyers decide based on emotion and aesthetic instead of logic.

Here are seven psychological factors potential buyers take into account when buying a new home:

  1. Emotion
    Whether it is a house or an apartment buyers are purchasing a home. It is where they will make memories and for many, there is a heavy feeling of emotional connection. It is not a shock to learn that home-purchasing decision involves plenty of emotions. A 2013 Commonwealth Bank survey of Australian buyers showed that 44% paid a higher sales price as they “really liked it.”Here is how to tap into buyers emotions. Prior to your first open for inspection, ask yourself – Where is the best room or space?  Where do you love to live and spend most of your time and why? By doing this, you can potentially heighten the emotions of your buyers by enhancing and focusing on that room, deck or space in the garden.  Buyer will purchase with emotion and justify with logic.  This often take the buyer outside of their budget because they really like your home.  It makes them pay more for your property due to its “feel good” factor.  Try to find out the emotion driving your feelings and enhance them for your buyers.
  1. Cultural superstitions
    What is the issue with numbers that some home buyers are influenced by them? For the superstitious, they believe that the numbers of a home can reveal whether a property is suitable. In certain cultures, certain numbers are thought to be more auspicious than others. The number 13 is normally believed to be unlucky but in some Asian cultures, the number 4 is believed to bring bad luck as how it’s pronounced sounds like “shi” which means “death” in Mandarin.
  1. Perceived value
    It may have cost you $100 – $200 and a few hours of your time to give your house a fresh coat of paint, but to a potential buyer a freshly painted home is seen as added value. Similarly, a room painted with an ugly colour can make people less likely to buy – even though it wouldn’t cost much to fix such problem.
  1. First impressions
    First impression counts, always! A first look at a property will leave the buyer either impressed or not. According to a study of 63 un-staged homes, the average selling time of a house dropped significantly after undergoing a complete “facelift.”A good first impression begins on the approach to the home so a good idea is to get in your car, drive towards your home and see what your buyers will see.
  1. A Home with a Story to Tell
    A powerful medium in sales and rockstar marketing is storytelling. The rational part of a buyer’s brain tend to look at numbers, technical specs history, possible resale value, etc. but their emotional side react to idealized account of the past owner.Not all stories will impact buyers and more than likely a home will have many stories. Be sure to share the history of your home, gather a few stories for reference so you can tailor your story to different prospective buyers.
  1. Social proof
    Social proof is important in a business founded on relationships and trusts. Social proof is the secret to shape most purchasing decisions, and purchasing a home is no exception.To create social proof, share your home on as many platforms as possible but in particular the more local, the better.
  1. The ideal lifestyle
    Home buyers are not purchasing a home, they are also buying a lifestyle. If they are looking at properties in Merewether, they are likely to be into an active lifestyle with decent cafes. It could also be about morning walks along the beach before going to work, surfing in the afternoon or Saturday brunch at their favourite café with friends.It’s important to sell a lifestyle not just a home, gain an understanding outside of the technical aspects of a home. Buyers like to find out about the history of a suburb, its local restaurants and schools, etc. Is there a highly-rated bakery near the home? Is the home close to the topnotch walks like the Fernleigh Track? These little details are important when people are buying into a lifestyle and why using a video is very important.

Getting an insight into the psychology of a home buyer can help your agent find the right future owner for your property.

The first step towards selling your home for more, is finding an agent who understands the psychology of purchasers.  An agent who understands how to help you present your home and market to your targeted buyers using psychology.  An agent who can entice the buyer to view your home and then negotiate using these same techniques.

To find out more abut how buyers will perceive your home and how to add value, call Annette Pinkerton directly on 0418447856.

The Hottest Trends for 2019

Exciting things are happening for home design this year. It appears that we are slowly breaking the chains and getting away from a little bit of the same old. Well, this is what industry watchers are hoping for.

Here is what you’ll see from new and exciting Australian designers who are creating a path for a new year of cool and revitalized homes.

Colour will reign supreme
We know that colour has an impact on peoples mood and state of mind. Look around you and you will see the natural world is full of dazzling colours. There are so many colour possibilities that it is quite unthinkable to settle for white on white on ivory – right? It is quite blah!!

This year, we are seeing homes dressed in colours, and not just through the odd coloured cushion. Expect more saturated colours to be used on walls, kitchen cabinetry and signature pieces of furniture.

Blues and greens in different hues such as electric blue, duck egg blue, emerald green and sage will remain kings, while hues of yellow/mustard and terracotta/rust will also remain on the spotlight. Living Coral is the Pantone colour of 2019, but it is foreseen that it would be 12 months before we see this colour adopted in Australia – if at all despite what some designers are trying to create.

 

New classics
In 2019, classic design continues to play a great role in modern design. Here in Newcastle, we are still seeing elements such as VJ wall paneling, decorative mouldings, ornate skirting boards, shaker-style kitchen cabinets and provincial-style cabinet handles displayed significantly in home design, putting in much needed texture and appeal to homes that have designed with a pared-back industrial influence for far too long.

But having said that, there are no strict rules to follow; there is no need to follow one particular home style to create a beautiful home. Of course, consistency is essential, but try to concentration on being constantly eclectic, constantly confident and constantly fabulous.

 

More is more?
Are you bored with minimalism? More is more and less is a big yawn? Homes of 2019 have personality and that does not necessarily equate to having more things in the home. What it means is that we are using materials and furniture pieces that pack a lot of punch. It means using wallpapers and furniture fabrics with bold patterns and colours. Bid farewell to grey floor-to-ceiling bathroom tiles and welcome coloured tiles and mosaics.

Neutral rugs have been traded with heavily patterned and coloured Persian rugs, while dull old ceiling downlights are being swapped with a blend of architecturally designed pendants, wall lights, floor lamps and table lamps.

No matter if you’re living in this house or preparing it for a successful sale, so you must curate it well.  Now go have some fun!!

Home Renovations in Australia at 14-Year High

It has not always been easy for Australia’s home renovations market over the past 10 years, but recent statistics reveal that the market is much larger than at any period from mid-2004.

Australia’s home renovations sector recorded its most active quarter in 14 years from July to September 2018.

GDP increased by a somewhat unsatisfactory 0.3% during the September 2018 quarter, but it was more positive for home renovations activity, with the volume of renovations work growing by 4.5% during the quarter alone and increasing by 11.0% from a year ago.

Solid performance of home renovations in the September 2018 quarter was attributed to very low and notably stable interest rates at present.

Due to the lending conditions becoming stricter, many families weren’t able to relocate over the past year. So, it looked like some of those have opted to renovate their current home as an alternative.

In the long term, experts are almost sure of further growth for home renovations.  Especially since a higher number of stand-alone homes were constructed in the late 1980s in Australia than in any other time before or since. It’s forecasted that many of these homes will require renovations in the coming years.

 

 

 

Property Sellers are Attracting Buyers Using their Dogs

Using professional photography to highlight the outstanding features of a property for sale has greatly evolved.

Novel and evolving techniques are continually being utilized, from scenic angles of water views to zoomed in snaps of a beautifully designed nook in a big space.

However, one of the most recent techniques that agents and photographers have been changing things up is by including life to the photos – in the form of the beloved family pet.

Dogs, the favorite companion of Australians, popping up in property photos is growing in popularity. And while seeing an adorable photo of a dog has people singing praises for the animal itself, experts think the idea brings more appeal to the sales campaign.

Agents don’t use this technique often but a dog in the pictures does help catch the attention of buyers and draw them to the home.

It creates a welcoming feeling, which is no surprise because plenty of people keep pets nowadays. On average, one in every three buyers has a pet, with a large number being dogs. It also shows buyers that someone loved living in that home.

When buyers see a pup in the pictures, they already know that the property has a dog-friendly yard. Buyers don’t need to ask if the yard suits their pets.

One of the most searched words for rent was “pet-friendly” and it is rising in popularity with owner-occupiers.

For buyers, this feature is as popular as water or ocean views or a courtyard.

Many properties for sale have successfully been sold because of dogs in photos. The properties feel welcoming to buyers and they immediately know that it is a family-orientated home.

 

 

House or Apartment? Four Factors to Consider Before Buying your First Home

The choice faced by a lot of first-home buyers is whether to choose a house or an apartment. But the decision over what to choose is usually about location and budget.

In most locations, apartments are much more affordable than houses, but prices differ across cities. Your funds may be enough to buy a three-bedroom house in certain suburbs, but in others your money may only be enough for a small, one-bedroom apartment.

Price and location
The first step in the process is setting your budget by talking to a lender or broker. The type of property that your budget can buy will be determined during this time.

Experts suggest making a list of your requirements, wants and non-negotiables in your dream house, reducing time wasted looking at wrong properties. By making these two steps you will determine which locations have properties within your budget, and suburbs available if you prefer an apartment.

Properties that are nearer the city centre are more expensive as the closeness to high-paying employment is an important factor that influences prices.

Apartments are usually located in inner-ring suburbs, close to train lines or near shopping centres, while outer suburbs are more likely to offer houses that are affordable for first-home buyers.

Other major factors for first-home buyers are access to lifestyle attractions and employment.

If an apartment in a better location than a house is within your budget, it is certainly worth considering. If a large house and yard is not a requirement for you, you’d be better off purchasing in a well-located apartment because of a solid price growth in popular areas.

Banks occasionally have more stringent lending rules for apartments in high-density locations, with some of them actually blacklisting certain suburbs where they have either lent too much or they feel the suburbs are going to experience a glut in apartments.

Practicalities and planning
It is the responsibility of the owners of houses to maintain the building, gardens and lawns on the block. Time-poor buyers are suited to apartments as the maintenance of the common property falls on the owners corporations.

For houses, the council rates and insurance are normally higher, and the heating and cooling bills are more expensive. In comparison, the strata fees for apartments pay for the management of the complex, including shared facilities like pools or gyms.

There is the issue of privacy and noise for apartment dwellers due to the proximity to neighbours. Houses, though, are more suitable for young families, who quickly outgrow apartments.

People tend to stay a little longer in houses compared to townhomes or apartments.

Land and development
The primary advantage of being a homeowner is the land where it stands on, as land increases in value as the population grows.

On the other hand, buildings devalue due to wear and tear, and require constant maintenance or replacement.

The possibilities for a house are greater via renovations, extensions or a rebuild as these can boost the value of the property. Apartment owners share in the land where the complex is built, and extensions or rebuilds are impossible, but cosmetic renovations can be done.

In-between options
Both size and affordability can be achieved with a townhouse, duplex or villa. Commonly joined to one or more sides and sometimes strata titled, these alternatives are less expensive than stand-alone houses.

Townhouses are looked at more favourably than units by lenders.

There are townhouses that actually give you your own chunk of lot and while they come with strata fees, they are not as high as apartment units.