Psychology of Homebuyers

Psychological factors play a key role in the decision-making process, especially on a subconscious level. Buyers want to have an immediate connection with a home. They want to perceive value in the property, so the purchase feels like a good deal—or even a bargain. All consumers crave reassurance that their money is being well spent.

Home sellers and their real estate agents can take steps to exert psychological pressure and encourage a fast home sale. Although using psychology to sell a product may sound sinister, these tactics are not manipulative in a negative context, particularly when you’re simply emphasizing your home’s best attributes in a compelling way. 

First Impressions Have a Lasting Impact

Home shoppers form opinions within seconds of seeing a property, both in-person and online. It’s important to optimize a listing and the property before a home is on the market, because there’s no second chance to make a first impression.

A well-maintained exterior, professional photography and a clean, inviting interior are all attributes that can make a home feel ‘right’ to people who see it for the first time. Homes that fail to inspire the right feeling on first impression risk losing a buyer’s interest for good.

Emotional Connection

People do feel emotional connections to things—even things they don’t own. Emotional cues, like cozy lighting or the smell of fresh flowers, trigger positive associations for people touring a home during an open house, making the property more appealing.

Conversely, damaged appliances, scuffed and dirty flooring, clutter, bad odors and a yard overgrown with weeds might inspire revulsion, even if all those things are technically fixable.

Perceived Value Over Cost

Consumers are drawn to products they believe are worth the price. Although people might be willing to pay a premium for small luxury purchases, they are less likely to overpay for purchases typically viewed as investments. There are multiple components in a consumer’s perceived value calculation in the context of home pricing:

• Competitive pricing creates urgency
• A competitive price compared to similar homes in the area reinforces the idea that the property is a good deal
• Home shoppers typically assume homes that linger on the market are either overpriced or have serious defects 

Homes That Match Lifestyle Aspirations

There can be a subconscious, aspirational component to a homebuyer’s purchase decision. Features like modern kitchen designs, open living spaces conducive to entertaining friends or family, or a home office perfect for remote work might complement the lifestyle the homebuyer wants to attain. Buying a home is a new chapter in a person’s life, and there’s a strong aspirational component in the moving process.

Fear of Missing Out (FOMO)

Competition is a powerful driver of value calculations in every aspect of life. Scarce resources that are in high demand are automatically awarded value in the minds of people. Multiple offers on a home, or even just a crowded open house, can instill a sense of urgency in home shoppers who fear losing out on a desirable property.

Neighborhood Appeal

Location is one of the few things a home seller can’t change about their property. Owners attempting to sell homes in neighborhoods with appealing characteristics should highlight those attributes in their marketing. There may also be marketing strategies that allow homeowners to downplay some of the local challenges.

Neighborhoods also have aspirational appeal to buyers. Properties near good schools, parks or hospitals might appeal to young people, even if they don’t have families yet. Homes within walking distance of stores or mass transit might appeal to someone who wants to drive less. Connecting the location to the broader lifestyle aspirations of homebuyers can be a powerful marketing tool.

Work With Home Sellers Who Understand What Motivates Buyers

72SOLD’s proven home selling system leverages psychology in several ways. Our agents use a variety of strategies, including thoughtful pricing, aspirational marketing and a sense of competition, to motivate buyers to act quickly. You can find out our price for your home and learn more about our process by filling out the form on our website.