Head Vs Heart - The Psychology of Real Estate

Howdy, had our most recent blog post picked up by API Mag - link HERE

What do people think? How much of your last purchase was pure logic, and how much was feelings?

I had a recent client comment on how "zen" I was during an auction bidding process... and I thought it was funny because he was a quant trader from an investment fund and one of the most calm, rational people I had met. Then I had a home owner get quite emotional over a purchase and I was reminded how property pushes our buttons.

 

I'm definitely emotional when it comes to a property purchase. Subconsciously or consciously we have a physical reaction to our environment. I have inspected hundreds of properties and the first thing I do is to pay attention to how I react to the property. Some houses make me feel anxious. Some relaxed and some happy.

It doesn't mean they need to be nice or renovated. My second last purchase was disgusting. It stank, had wall paper hanging off the walls, the carpet was disgusting and the kitchen was a complete gut. I liked how I felt when I walked in there because the house has a nice flow and the room are large with high ceilings.

After a good renovation people love the house and I still feel good when I go inside. I figure if I have a good reaction to a house then other people will too. It's working so far!

 

That's a sixth sense, some would say that it's Feng Shui, others good design. That's not to say that you can't improve on what's presented however it's a great starting point when the place stacks up and projects a good aura.

 

@Perthguy @Scott No Mates have either of you read Malcolm Gladwell's "Blink"?

 

@BuyersAgent - I haven't but will have to look it up.

 

I've done both. The first, was meant to be my PPOR , loved the place and even told the RE that I loved the place!
Was young and dumb but luck was on my side with no bidders on auction day and managed to get the place for around 70k under reserve price. In a funny twist of fate, I never got a chance to move in to the place but it's been rented since the beging and it takes care of itself and more financially.

Second property was pure logic, went for the worst house in thea best street with a 5 year plan to live in it and accumulate half of the mortgage in an offset and turn it into an IP. Just did that last week after exactly 5 years at the place.