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Impulse Buyers In Real Estate???...Or A Black Friday Mirage!

By
Title Insurance with Patriot Land Transfer, Inc.

The dictionary defines an 'impulse buyer' as one who makes a sudden spontaneous inclination or incitement to some usually unpremeditated purchase...one who has a propensity or tendency to purchase, usually other than rational.

You know what an impulse buyer is...one who goes out to buy a bag of groceries and comes home with 3 or 4 bags...one who goes out to buy a low priced Chevy that gets great gas mileage and drives home in a gas guzzling SUV...one who goes out to 'browse' Sunday open houses, and returns with an offer to purchase in their hands!!! Get it?

Look, to keep it simple the key words are 'spontaneous', 'unpremeditated', 'non rational propensity'. So do you think there are these kind of buyers in the real estate market...assuming a normal or average market? Do people buy, not necessarily what they should or ought to buy, but what may 'tickle their fancy' on any given home buying expedition!

I say emphatically, YES!

Now I'm not saying every prospective home buyer, but I'll bet a good portion of them. I can just hear Lenn Harley now...she's either strongly agreeing or strongly disagreeing with my assertion. Now Lenn herself does not strike me as being an impulsive type buyer, but I'll bet she holds some strong opinions about this subject! Hopefully she'll weigh in on this one.

It's been over 30 years since I sold real estate, and much has changed...but I still can remember having 'buyers prospect cards' indicating the type of housing desired, the style, the location, the price range, and the amount of mortgage financing required...and I remember tearing up many a card where the people purchased housing that did not even slightly resemble the information on their profile card!

So tell me, is there such a phenomenon as an impulse buyer in real estate...is there what we used to refer to as a 'hot buyer'...when shown dozens of houses, do people select the one you least suspect to make an offer on...do they make decisions based on appearances, good staging, eye catching decor or design...and is this one of the reasons for 'buyer remorse'?

If the answer is yes to any of these questions then I think you'll have to concede that there is such an anomaly as 'the impulse buyer' in real estate!

We'll discuss in another post some of the ramifications of this phenomenon!

                                                     

 

Show All Comments
Chris Griffith
Downing-Frye Realty, Bonita Springs, FL - Bonita Springs, FL
Bonita Springs Listing Specialist - Agent

Down here in South Florida we have the tourist shoppers.  I call it "getting drunk on palm trees".  They'll always say they'll call you  when they get home....but they sober up.

Nov 22, 2007 10:26 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
I have not seen buyers buying homes on impulse. I have had  buyers who took  too long to decide and lost out on the house.
Nov 22, 2007 10:32 PM
Adam Waldman
Westcott Group Real Estate Company - Hauppauge, NY
Realtor - Long Island
FRAN:  In the seller's market, I would say that there were impulse buyers, because people were afraid of missing out because inventory was in short supply.  Now, with inventory up, most buyers are overly cautious.
Nov 22, 2007 10:37 PM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Gary: We like to send them off with 'warm fuzzies'!!!

Kay: Wise choice...I do the same!

Cathy: 'Impulse' is not always 'wrong'...It can turn out to be a good thing...sometimes our 'gut' is intelligent!!! Your example is an excellent example for my post!

Thanks,   Fran

Nov 22, 2007 11:34 PM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Chris: Coffee, lots of coffee!!! LOL

Gita: I have heard that many buyers often regret not buying the first house they looked out...subject for another post!

Adam: You're right that's why I qualified my statement with, "assuming a normal or average market"!

Thanks,   Fran

Nov 22, 2007 11:41 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Fran, I don't see that many anymore, in a sellers market yes. They were afraid they would lose out, now most of our buyers are taking their own sweet time. They change their minds constantly on where they want to be in Washtenaw County.
Nov 23, 2007 12:03 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Missy,

Did you see Cathy Glass's comment above? That's kinda what I was referring to!!! Thanks,   Fran

Nov 23, 2007 12:21 AM
Ron Parise
LocateHomes.com - Cape Coral, FL

 There is no question that a lot of buyers are sitting on the sidelines waiting for prices to come down further. but there sales happening and some of these seem like impulse buying.....but is it?

  Here in SW Florida we have a lot of folks from up-north that live here in rental properties 4 to 6 months a year. (also Canadians and Europeans) They ofen return to the same house or condo every year. They know the area and they know what they like. And for years, perhaps,  they have considered a purchase.  Now with interest rates low, the stock market at record highs and our dollar at record lows and prices rolled back to 2004 levels; everything is perfectly aligned for a decision. This looks like impulse but its really not. It is well a considered decision. Its just that we havent been a party to their decision making process, only the end result

The same sort of thing is happening with our local buyers, especially first time buyers. The want a home, they need a home, but for several years now that have been priced out of our market. Now with prices way down they are ready. Their decision will look impulsive, but they have been working on this for a long time.

 

Nov 23, 2007 12:31 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Ron,

Nice assessment...I've seen many of these 'down cycles' over the years...the one thing they all seem to have in common is the 'pent up demand' that they unleash when business turns around!!!

Watch out for the tsunami! Thanks,   Fran

Nov 23, 2007 12:39 AM
Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
I believe in the impulse buyer. A lot of buyers walk into a house and just say this is it. It's a feeling they get and most of the time it's nothing along the lines of what they asked for. Your Orlando & Lake Mary Real Estate Expert, Heather Joubran
Nov 23, 2007 12:46 AM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
Fran, I don't know if there are impulse buyers but I'm sure in the spectrum of buyers there are. I haven't ran across one yet. Buyers don't know what they don't know. They start off wanting one thing until they see something else they like. We are all probably that way even when we buy cars. You think you know what you want and then you see something else that you say, "Wow."
Nov 23, 2007 01:03 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Heather: I guess I was right...some things never change...human nature!!!

Gary: We need more 'WOW' listings!!!

Thanks,   Fran

Nov 23, 2007 01:19 AM
Armando Rodriguez
QUEST REALTY SERVICES - Orlando, FL
Orlando Homes 4 Sale, Real Estate Broker-GRI

I agree. Before the internet and virtual tours most people had no idea what I would show them other than their basic requirements.

Good post!

Nov 23, 2007 01:00 PM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Armando,

Thanks for dropping by and commenting!!! Thanks,   Fran

Nov 23, 2007 01:07 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I so often take a buyer to a home that doesn't meet their criteria and just say, I need to stop and look at this home to see if it meets one of my other buyers coming in next week, you wanna come in. It is a test to see what they are really looking for. More often than not, I find out things that were not on the original list of must haves!

P.S. - I noticed you stopped at the 60's with a reflection in time? What is up with that?

Nov 24, 2007 04:35 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Todd,

You're beginning to sound like my mother...the 70's are harder, not much exciting happened:^) Great idea, btw...! Thanks,   Fran

Nov 24, 2007 06:15 AM
Joyce "Joy" Mahaney Brewster
High Profile Realty - Glendale, AZ

I have not experienced this here in Arizona.  In fact, just the opposite!  The buyers I have worked with want the most house for their money and they are want to take the time needed to find the one they want!

Nov 26, 2007 01:48 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Joyce,

Thanks for sharing...There are many regional differences of opinion on this subject...that is why I raised it...This comment thread has been very informative to me! Thanks,   Fran

Nov 26, 2007 02:22 AM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I was born and that should be enough!

Todd

P.S. - I see it is up and I will comment on it here shortly - lol

Nov 28, 2007 04:35 PM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Todd,

You're right...that was 'impulse' at its best!!! Thanks,   Fran

Nov 28, 2007 10:18 PM
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