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REALas Australia’s most accurate property price predictions

Understanding the psychology of home-buyers

Understanding the psychology of home-buyers
March 13, 2018 Girish Bindal
understanding psychology home buyers

Understanding the psychology of home-buyers

It may behoove the real estate sellers and agents to understand the psychology of a home buyer, in order to survive and thrive in the real estate market. As understanding your customer is key to cultivating your business, there are a few aspects which can help real estate sellers and developers create a more fruitful market for both sides concerned.

However, customers shall also have to keep these factors in mind and keep them in check, when venturing to decide on the property to buy:

Emotional quotient

It has been observed from industry surveys that customers are quite eager even to spend more than is applicable for a property when they “really like” it. Helping a customer visualise a property as their own is the key to catalysing its ‘sale factor’. This is why 3D to 7D virtual tours are gaining traction in the market. Similarly, ihome-staging, wherein sellers showcase the property along with furniture and accessories, has been popular for quite some time.

The idea is to help home-buyers visualise how it will be like to stay in a house. On the flip side, customers often overlook crucial details like proximity to amenities, openings, number of rooms, etc., in the rush of sentiment.  For the customers, it is crucial to stay analytical than to get swept away by the pleasantry of the sentiment.

Cultural superstitions

No matter how urbane our lifestyles get, superstitions shall always weave their way back into culture. Numerology, Vastu and Feng Shui and their tie-up with the home settlement is nothing new. For customers, it is prudent to be on the lookout for addresses bearing numbers that are positive for them, and addresses that do not rival their Feng Shui beliefs. For real estate agents and developers, it is precautionary to keep numerological, Vastu and Feng Shui aspects in mind from the get-go, so as to not rub customer’s beliefs the wrong way!

No matter how great a property is, if it is not meeting these standards it is going to stay in the market for a longer period for sure. Being ‘Vastu-compliant’ or so, could be amongst the best bets for putting the psychology of home-buyers on the positive side.

Aesthetic value

The closer the property is to looking like a finished product, the more it’s likely to attract home-buyers. A tasteful coat of paint on both the interior or exterior or an opening with a good view may help drive the property’s value up for customers. On the other hand, a customer is more likely to nitpick with a home which is coloured in a dull shade, or doesn’t offer a good view, even if it’s in a prime location!

A great-looking wallpaper inside the property or a lampshade uplifting the internal ambience of the house is certainly something that affects home-buyers. Many property brokers, who deal with home-buyers day-in and day-out, have also observed that it also matters how the property smells. Let there be any foul smell, and it is going to spoil the show while a good, subtle fragrance can boost the buyer sentiment by several folds.

First impressions

It becomes quite obvious whether a customer is going to invest in a property or not, based on first impressions.  Even a property in an unprofitable locale, with a few years of age, can fetch a good price, provided the pros and qualities of the property are highlighted to the customer. The first impression is pretty much the best impression when it comes to real estate.

A home-buyer typically decides on whether he or she is going to buy a property or not in the first 5-10 minutes itself. The same goes for the sales pitch. If the seller or their representative gets successful in presenting the property in the first 5-10 minutes, then there are higher chances that all other things fall into place.

Moreover, making a property worthy of presentation works out well for real estate agents and developers. Customers, on the other hand, should be smart enough to peek behind the canvas without being swept away by the product from the get-go!

Social media influence

Safe to say, this is one parameter which serves as a stamp of quality for all parties concerned. If a property or a real estate developer has good reviews, it helps them drum up a good business.

If a customer is looking to purchase a home, it usually works out for them to look for the ones that have got good reviews and ratings on business listings and social media. Properties having a bunch of negative reviews are bound to suffer than the ones which garner positive comments. Social media has indeed become such a huge influencer that home-buyers never even bother to delve further and take all that is there on its face value.

Sooner than later developers and marketers would know what are their instruments in winning the psychological warfare to win more customers and customers too know what could lead them to a roller-coaster ride.

 

Author Bio: Girish Bindal is the Head of Content at Makaan.com, PropTiger.com & Housing.com. He draws from more than a decade of cross-industry experience and has worked for brands in the Real Estate, Recruitment and Consulting domain. In his current capacity, Girish is known to gel the news, numbers and opinion to drive the content consumption. With an analyst’s approach and a sharp focus on numbers, Girish has been organically progressing the brand to build a growing base of audience. An audience who are keen to buy property.

 

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    The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of REALas.