Complicated Thought Patterns of Buyers & Sellers

In this time of uncertainty in the financial industry and housing markets, undertand how buyers and sellers think is important. According to Wendy Cole in the September 2008 issue of Realtor magazine, buyers and sellers can appear whimsical and irrational in some of their decision making.

How do we determine what buyers and sellers really want?

According to Cole, "the potential for misunderstanding and mistrust is enormous." Perceptions of what the other person is thinking can be off. Cole notes a professor of behavioral economics at Carnegie Mellon has stated that buyers have an attachment and feel they "own" the home once they have made an offer. This realization should help calm sellers' anxiousness about a buyer's commitment, even in times of uncertainty.

But buyers can be overconfident about whay they know according to Jason Zweig, colulmnist for The Wall Street Journal. According to Zweig, most buyers don't have an answer to the question of "When is the right time to buy?" if asked; but they may be convinced prices will drop further. People fear losing money, and that's rational. Sellers, on the other hand, may become more distressed about a fall in the value of their home than they are in a drop in the value of their stock.

Warning buyers and sellers about what to expect (i.e., a wall of paperwork at closing) can be a smart move to keep perceptions on track. Rather than being frightened off, consumers appreciate honesty in sales people. And that's why this Realtor is determined to keep communication open and honest with her customers and clients. You can bet on it!