Buyers Buy with their Hearts First, Not their Heads
November 24th, 2007 Categories: Lighten Up, Real Estate News
Research confirms what I’d suspected: Buyers are highly irrational beings.
![IStock_000003077171XSmall[1]](http://www.theoakvillebuzz.com/wp-content/uploads/2007/11/istock-000003077171xsmall1-small1.jpg)
An economist might assume buyers make logical decisions about features, benefits and reasons to buy. As an observer of home buyers’ reactions first-hand (as well as my own) I say ”Not so!”
This was confirmed lately when I read some new research on Buyer Psychology. A group of scientists from CalTech, Carnegie Mellon and MIT reviewed studies examining how people buy. Their conclusion:
“Buyers buy with their hearts first. When money changes hands, the primitive, emotional part of the brain calls the shots. Buyers buy with their heads second. Logic comes in afterwards as the brain justifies the decision it’s already made.”
Salespeople need to pay close attention to this as well as home sellers. A few things you should know:
1. Little details matter just as much as big things.
You need to tug at the emotional heartstrings. While a new roof might be an important factor, a master bedroom that has a well-dressed bed with luxurious towels in the ensuite might make more of a difference in the buying decision.
The first home my husband Wayne and I purchased as newlyweds expecting our first child illustrates this. (I was not a REALTOR at the time.)
When we entered “the home”, the right music was playing, the table was set for dinner with cloth napkins and dinnerware. I was “really feeling this home” and then I saw the white trellis on the back patio with a glorious red rose bush clambering up it. That did it! My heart had connected with this home emotionally, and the decision was made.
(Two winters later unseasonably low temperatures resulted in the demise of the rose bush. In our inexperience we had not even realized that we had overpaid and that the house was too small…..)
But just a few years ago when we purchased our current home a similar thing happened. My husband entered the house and saw the spectacular fall panorama of trees behind our property. He was instantly smitten and decided to put in an offer before viewing the upper level or the basement.
2. It’s a seduction process: “You need to have them at Hello”
Traditional selling approaches focus on logic and reason, features and benefits. But if you engage with homebuyers at that level alone, you could be wasting your time.
It’s all about the emotional feeling they get when they first enter the house.
Have the lights on, the music playing, the scented candles, create the atmosphere! Appeal to all five senses. Cookbook open on the counter, textured throw casually draped on the chesterfield, fresh flowers on the hall table, luxurious soaps and bath salts in little bottles in the master ensuite, crackling fire in the family room, urns filled with flowers on either side of the front door, seasonal touches where possible.
Remember, you’re not just selling a house, you’re selling a lifestyle.
I make sure all homes I sell are carefully staged. My stager Karen Kostyshyn of Home Interior Transformation is exceptional. She and I work together to put those extra dollars in your pocket.
3. Don’t give them a reason to say no!
Your home must be scrupulously clean, and preferably in move-in condition.
I was in a very nice, almost new home, the other day, which showed very well and was decorated in the latest designer colors. The buyer was smiling and nodding approvingly as she wandered through, until she entered the ensuite bathroom and saw a few traces of mould growing in the shower tiles. The spell was broken. One bottle of Tilex and that negative impression could have been avoided.
The sellers market we have been experiencing over the last few years, has given way in most areas in the GTA and surrounding areas to a “balanced market’ with more or less the same numbers of buyers and sellers.
Sellers, more than ever, you have to know how to woo your buyers. This starts even before they enter the home, with the photos you show on the internet. One home that we staged and marketed this year was so appealing that I received a call from the buyer’s agent saying they were bringing a signed offer at 9 p.m., without having seen the home on the inside. I use a top-notch professional photographer, who takes up to 70 photos, depending on the size of the home, which I post on my website, in addition to the MLS photos.
Call Hilary Shantz and her home-selling team at 905-599-3311, to advise you how to prepare and market your home to capture the buyers’ hearts and their pocketbooks!
This entry was posted on Saturday, November 24th, 2007 at 8:36 pm and is filed under Lighten Up, Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Hillary,
This article is so correct. As real estate agents we should not only understand our clients emotions and reasons to buy or sell, but we should satisfy those emotions as well. That is the real value that an agent can provide to get the deal done.
Hilary,
What a great post filled with lots of good information. Buyer’s do buy with their hearts in most cases. You said it best when you said that they are buying a lifestyle…a home and not just a house. It is good to know that Oakville, Ontario has a great agent such as yourself that knows and realizes how important it is to make a house look like a home while on the market. Great points that I am sure to use in my business.
Chad
This is so true. I tell sellers that people want to walk into your home and think that this is going to make their life perfect. This is why staging is such an important factor in selling a home. But it also shows that the sellers really care about selling their home- which impresses buyers as well.
I also make sure to tell buyers that they have to look past an old carpet or paint on the walls not in your favorite color. Look at the things you can’t change.
Hi Scott, Mary and Chad, good of you to stop in! I am glad to have you as referral partners in Maryland, Georgia and D.C. Canadians are purchasing homes in the U.S. more given the current economic scenario.
Every day I am reminded how much a home means to all of us, it represents a place where we can enjoy coming back to every day and spend time with the friends and family that we love the most, and our primary finanical investment, that’s what makes me really enjoy the fact that I can assist people with this important, all impacting part of their lives! Keep on soaring guys!
Hilary
Great article written by a top Oakville Ontario Realtor with a mind for details! Don’t fall in love with something that doesn’t love back!!Especially real estate no matter how s.xy it is!!
Hilary, Oakville Buyers and Sellers need this understanding… as do Charlotte buyers and sellers.
this post makes me sorry I’ve been away so long.Andhaven’t we all fallen for a house once?atleast? Terry McDonald
Hilary - The emotional aspect of buying a home can not be overstated. Whether in Oakville, Ontario or here in Indianapolis, buyers need an agent to help them take the emotionalism out of the equation. Sellers need an agent who knows that emotion sells a home. The hats we wear!
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