The voices in our head

Having worked in this industry with buyers since 2003, and having bought my first home back in the 1990’s, I’m familiar with the ways human psychology can rain on a property buyer’s parade.

Psychological-induced worries can strike when we’re least expecting it, and it can cast a spell in all kinds of ways.

These days, we prepare our buyers for the common one; post-purchase dissonance (a feeling of panic or regret shortly after a purchase), but there are many types of decision-making doubts that grip us.

The common, market-related terms many are familiar with include FOMO, (fear of missing out; and one that usually strikes in a hot market when prices are soaring and supply feels tight). FOBBABO is another term we’ve coined, (fear of buying before a better option). This can strike in any market but it’s more prevalent in a falling or static market. Buyers are often concerned that they may purchase something suitable, only to find that a more optimal, (or cheaper) purchase opportunity comes along after they have already committed. 

We’ve seen many a good acquisition opportunity thwarted by this one.

Some of the less discussed psychological blockers include;

The fear of pushing a partner into a property that they may not feel as enthusiastic about. Often in partnerships, one person takes more of a lead in the property quest than the other. This doesn’t necessarily mean that the other person is not keen on the property (or the strategy), in fact it may just mean that they are more shy or less energetic about taking the lead. But when partners aren’t quite on the same page, trouble can strike if the less-inclined partner gives the impression that they are agreeing to purchase out of sheer fatigue. The pressure on the dominant decision-maker can lead them to second guess the viability of their selection.

The fear of dishonouring a late-loved one when spending an inheritance. This is an unfortunate burden I see often. Sadly, it strikes so often when we work with buyers who have been gifted a special inheritance. The buyer’s determination to honour the memory of the loved one who gifted them the money can quickly contradict the intent of the gesture when their quest for a great property that makes them happy morphs into an obsession to find the perfect property. 

There is no such thing as perfection when it comes to property and this can dismantle a feasible search when it bites.

Listening to others is a constant battle we see buyers facing; particularly first home buyers. When parents or friends weigh in, the intended strategy can quickly become blurred. Once confusion sets in and the buyer starts scrambling for a ‘please-all’ approach, their once-achievable brief becomes a messy assignment unattainable criterion all overlayed. The symptoms of such a problem include random suggestions that are misaligned with their original criteria, buyer frustration and often fatigue and despair.

Trying to save a few dollars by shaving the budget can set a buyer back significantly when their discounting is not commensurate with their expectations. We see this a lot, particularly in a rising interest rate environment. Problems strike when the buyer spends months in a rising market searching hopelessly. We helped several buyers during 2020 and 2021 who had deliberately shaved their budgets in an effort to reduce their debt, only to find that as the market rose, they were forced to increase their budget and they ultimately purchased a product that they could have bought for far less had they just adopted their original budget in the first place.

And last, but not least, buyers fearing that they are not deserving of a great property. Being humble is a lovely character trait, but when a buyer talks themselves out of something aspirational merely based on a sense that they aren’t worthy of the property, regret can later strike. We always stress the importance of future-proofing a purchase, and we remind our clients that the worst scenario is a decision to sell based on discontent with a property. 

Our best homebuyer advice is to select a property based on the must-have and nice-to-have criteria list, and to stick to the must-haves.

Cover image credit: Uday Mittal