Analysis Paralysis

By
Real Estate Agent with Keller Williams Realty Consultants


Question Mark Analysis Paralysis.  According to Wikipedia Analysis Paralysis is the state of over-analyzing (or over-thinking) a situation so that a decision or action is never taken, in effect paralyzing the outcome.  A decision can be treated as over-complicated, with too manydetailed options, so that a choice is never made. A person might be seeking the optimal or "perfect" solution upfront, and fear making any decision which could lead to erroneous results, when on the way to a better solution.  Does this sound familiar to anyone?  

I see Analysis Paralysis occurring more and more in my Buyers.  In the post-recession era with a quickly rising interest rate and advent of the internet providing every detail of market data and advice, it can be overwhelming to any Buyer.  Especially a first-time home Buyer.

So what is the best way to manage a Buyer that you know has found their "perfect home" but can't make the decision to make an Offer because of Analysis Paralysis?  

  • First, sit down with them and explain the housing market numbers specific to the area.  Buyers are inundated with housing market numbers that are a broad representation of the market and not necessarily specific to their local area.  If you know the home is priced right for the area, help them understand the price by analyzing the local market numbers.
  • Second, have them write down their top three needs in a home.  They may have done this in the initial Buyer Consultantion but writing them down again will help weed out a lot of fluff and unncessary wants.  You are re-focusing them on what is really important.
  • Third, review one-by-one the previous homes visited and compare the previously discarded homes to the "perfect home" in front of them.  Sometimes reminding your Buyer where they have come from will help provide that moment of clarity on why the "perfect home" in front of them is THE ONE.

In this market of low inventory and rising interest rates, don't let your Buyers lose out on the home that you know is right for them.  Help your Buyer focus on what factors are really important in the home buying process. 

 

Comments (3)

Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Bottom line, in today's market, a buyer simply can't wait to make an offer if they find a home that will work for them.  And after realizing that (after losing out to someone who was quicker), their paralysis should be broken!

Thanks for sharing.

Aug 29, 2013 12:43 AM
Dan Hopper
Dan Hopper - Gold Way RE - Westminster, CO
Denver Broker / Real Estate Advocate

Oh Deborah, what a typical scenario lately!  So many buyers have sat on the fence, then decided to make a move, and THEN paralysis by analysis has killed so many good opportunities for them.  Great topic, on this Thursday!! 

Aug 29, 2013 12:45 AM
CHRIS PAHL
Georgia Title & Escrow Company - Atlanta, GA
Attorney at Law

Love that term Analysis Paralysis!  I think it happens so often, even in non homebuying situations.  Thanks for the post!

cp

Sep 11, 2013 04:34 AM