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.