The 4 Psychological Principles Shaping Property Buyers’ Decisions

Beyond Theory and Experience: The Psychology Behind Successful Real Estate Sales. Discover the four essential principles shared by PropertyScout today. Implementing these principles is your key to making selling real estate a breeze!

Loss Aversion

Loss Aversion: The First Psychological Principle to Consider. Many people fear missing out on the best deals if they don't act quickly. Even though better options may arise, sellers can leverage their advantageous properties and deals to instill a fear of loss. For example, phrases like 'Rare Opportunity' or 'Limited Availability' often create a sense of urgency. This tactic is commonly used in property booking websites, notifying users of the remaining availability or the number of interested parties. Similarly, in real estate sales, the 'First Come First Serve' approach is often employed, where the first person to make a quick decision and place a deposit secures the property. By triggering a fear of missing out on great deals, customers are more likely to act swiftly and secure their desired property.

Framing Effect

Framing Effect: Influencing Our Decision-Making through Presentation. It's about presenting options in a way that evokes a more positive response than a negative one. For instance, choosing between '5% Condo Discount' and 'Save 175,000 Baht off Full Price,' most buyers are more inclined towards the latter option, even though both options have the same meaning.

Decoy Effect 

The Persuasive Pricing Technique: Influencing Customer Decision-Making through Tempting Options. By introducing enticing choices and expanding product/service options, this technique aids in customer decision-making. For example, instead of offering only small and large coffee sizes, adding a medium-sized option can increase customer engagement. Similarly, presenting a mid-range, high-performance mobile phone model between the most expensive and cheapest options.

Anchoring Bias 

This principle is commonly employed in sales, especially for high-value products like cars. When you visit a car showroom, you often see cars with higher prices highlighted or prominently displayed initial prices. When customers encounter promotions or actual selling prices, they become the first reference point and create a lasting impression. When customers explore the actual showroom, they feel that there are reasonable and worthwhile prices.

The same applies to real estate sales. Customers tend to remember the initial selling price, and if we have deals in the same or similar projects at a lower price that aligns with the customer's needs, it helps generate interest and persuades customers to make decisions more easily.

Conclusion

In conclusion, the insights shared in this article revolve around the 4 'psychological principles' that shape buyers' decisions in the real estate market, according to PropertyScout. By incorporating these principles into your sales approach, you can significantly enhance your chances of success. However, it's crucial to consider the timing and suitability of their application, as well as the depth of your understanding and implementation. The more familiar you become with these principles and actively integrate them, the more impactful and refined your perspectives and presentation techniques will be, leading to greater effectiveness in selling real estate.

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