Most homebuyers believe their property decisions are based on calm and collected reason, but it seems that couldn’t be further from the truth.
Research from Commonwealth Bank shows the vast majority of buyers are swayed by emotions, and most probably don’t even realise it.
The primary considerations that will guide a search for a new home include price, location, size and ongoing costs.
But on top of that, there are various drivers that can be less obvious and based purely on what a would-be buyer is feeling, according to executive coach and clinical psychologist Dr Tim Sharp who conducted the study.
After probing the emotions of 1000 homebuyers and investors, he pinpointed the most common emotional characteristics that influence purchasing decisions.
A whopping 37 per cent of buyers would be swayed by “the vibe” of a place, with another 22 per cent likely to buy based on what they see as an “instant attraction” to the property, he says.
Furthermore, 21 per cent of buyers will be influenced by a sense that the home suits their personality.
Sharp believes many people are probably so overwhelmed by the buying process that they don’t even realise what’s influencing them.
“Many homebuyers start their journey to a new home full of excitement and optimism, but are gradually worn down by the sheer exhaustion of researching and inspecting different properties,” he says.
“More often than not, by the time it comes to signing on the dotted line, our heads are crammed with all sorts of emotions that ultimately end up influencing our decisions.”
His research also uncovered differences when it comes to the most influential characteristics between buyer groups.
For example, investors are more likely to be swayed by a property that makes them feel successful, while first homebuyers will get carried away with a house’s décor.
Across the board, nearly half of respondents admitted to paying more for a property simply because they really liked it, he says.
Commonwealth Bank general manager of home loans, Clive van Horen, believes it’s easy to get swept up in the emotion of buying a home or investment property.
“My advice to anyone who wants to get the right property, for the right price, would be to constantly revisit their original objectives for buying a new property and use them to assess properties on which they’re looking to make an offer.”
Article originally published on Australian Property Investor website.