Five emotional reasons why people buy homes
Unlike commercial property sales which involve careful consideration of the price and return on investment, residential homes are generally bought for emotional reasons. Making a successful residential sale involves understanding this underlying reason and connecting the sale to it.
Here are five emotional reasons why people buy homes:
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Peace of mind: Living in a rented space requires a constant cash flow to pay the rent. This causes a worry for many people because should something bad happen at work, like unexpectedly losing their job, then they might find it difficult to pay the rent. Such people would prefer to live in their own house so that they have peace of mind on this issue.
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Aspiration: Buying a home is an aspirational dream for many people. Their status in society is enhanced when they tell others that they own a house. They feel pride and self-respect. Buying a house is an important milestone in their life.
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For a lifestyle: Some people have dreams of a lifestyle that they are currently unable to achieve. Maybe they would like to exercise regularly, but the thought of driving through congested traffic and hunting for parking space is stopping them from going to the gym. A residential complex that provides amenities like gym, swimming pool or sports area might be just what they need for them to successfully live their desired lifestyle.
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Keeping up with others: Don’t laugh. This is an important reason for many buyers! They see their friends and colleagues buying houses and talking about it all the time. They feel left behind; that everyone else has gone ahead in life except them. These could be first time house owners, or even experienced buyers looking for a vacation or retirement home.
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As an investment: Finally, there are people for whom the purchase is an investment. They don’t intend to live in the house, but are buying it to rent out or to sell at a profit later on. These buyers are most interested in the rental value and appreciation potential of the neighbourhood.
As a seller, if we can understand the emotional reason for the buyer, then we can connect the property to their underlying reason and increase the chance of a successful sale.
