You Don't Have To Touch It To Feel It

By
Real Estate Appraiser with Reliable Appraisal

Have you ever stood in front of two products in a grocery store fretting over features, promises, prices per ounce??  All in all making a 20-30 cent decision and then pop into a Starbucks and spend $4.29 on a White Mocha Frappuccino and not think anything of it?  How can we so easily part with $4.29 and fret over 30 cents?

Studies show that consumers rationalize buying decisions on facts but make actual buying decisions based on emotions.   It is believed that 20% of the decision to make a purchase is logical and 80% is emotional.

Home purchases can easily be the single biggest purchase for a consumer.  As realtor's do you have a litmus test to determine if your prospective client is a rational or emotional buyer? 

If so do you deploy different strategies to:

  • Help your prospective client "feel good" about you representing them?
  • Deliver emotional value to get them to their final decision on home buying?

Perhaps we can share our thoughts, ideas, and experiences...

 

-Meg

 

Comments (8)

Karen Webster...Grand Rapids, MI Realtor
5 Star Real Estate, Grand Rapids MI - Grand Rapids, MI

Interesting question, Meg.  You get props for not just posting the "same old."  I'm fairly new at this, but my husband has been a realtor for 18 years.  He's convinced buying and selling are both more emotional than rational. We've all had buyers with a long list of requirements fall in love and buy a house that doesn't meet them.

We've also had sellers upset and ready to say "no" to an offer that's really not asking for much from them.  Like it's $1500 less than they wanted, when their mortgage payment is $5000/month.  You need to explain the rational part of why it's better than waiting for another buyer.   

Oct 28, 2007 03:07 PM
Meg Stewart
Reliable Appraisal - Frisco, TX
Appraiser-Frisco, Texas

Thanks for the kind words Karen and for also sharing your thoughts.   I truly believe we could all find greater success in business and life if we understood this aspect a little more...

 

Have a nice day.

 

-Meg

Oct 29, 2007 12:56 AM
Meg Stewart
Reliable Appraisal - Frisco, TX
Appraiser-Frisco, Texas

 

Karen.  You can't help but to wonder why clients wouldn't want a good deal today rather than a perfect deal tomorrow...

 

-Meg

Oct 29, 2007 09:43 AM
Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Meg, I agree with your stats that financial wisdom is almost always 80% emotional and 20% head knowledge. If it was the other way around, we probably would not flourish as fast as we do in this country.  Sad but true. This country thrives on credit and it is the only thing that flourishes this country.

 

Oct 30, 2007 03:23 AM
Sara Goodwin
Ashcroft & Associates - Portland, OR
Portland, Oregon Appraiser
As a RE professional, I still rely on a Realtor that is able to talk me out of the bad ideas that my emotions come up with.
Oct 30, 2007 04:34 PM
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth
I'm getting better with making decisions with my gut (heart) vs. my head. The intuition is almost entirely 100% right. I think women are better in this area (the feelings stuff).
Oct 31, 2007 11:51 AM
Ricki Eichler McCallum
CastNet Realty - Corpus Christi, TX
Broker,GRI,ABR, e-Pro, TAHS
Meg,           Have you ever heard that old saying "Buyers are liars"?   It's because they say they want one thing and buy something else.  It's all about the emotions.
Oct 31, 2007 02:53 PM
Dale Campbell
Virginia Real Estate - Mechanicsville, VA
Meg - We call that "penny wise, and dollar foolish", and it is so very true!
Nov 02, 2007 03:13 AM