Buyer psychology and how it affects the pricing strategy of your home when trying to sell
Could learning more about buyer and, indeed, seller psychology be the key to selling your home this summer? Understanding how our minds decide to buy means you can tailor your marketing and property presentation to hit the mark with potential buyers. Read this article to find out more.
Buyer psychology is fascinating and, at a very basic level, is the understanding of why consumers behave in the ways they do. Understanding buyer psychology allows us to understand how decisions are made and what can influence this decision-making process.
Whilst this is most often looked at in depth by business owners to try to sell more of their products or services, there is merit in understanding buyer psychology when trying to sell your home.
If you can tailor your home's marketing and pricing strategy to appeal to your ideal buyer, you'll be more likely to sell for a price you are delighted with.
Seller psychology-
Property presentation…
Starting with seller psychology, the decision-making process to selling your home can take years. Ultimately the decision comes because, for one reason or another, your current home doesn't work for you anymore. Whether it is not big enough, too big, or in the wrong location for your family, you've fallen out of love with the property. You likely have gotten to the point of total frustration with the property before taking the plunge and putting it on the market. With this in mind, you need to consider how you feel about the property and whether this is reflected in the home in any way. Perhaps you have stuff piled up everywhere because you simply don't have enough room for your family and belongings. Or maybe you have left the garden to get completely overgrown because it's too much to manage.
If your home's presented in a way that shows it's no longer loved, this message will pass on to your viewers, giving an unnecessary hurdle to them choosing to buy your home.
Cast your mind back to when you first found the property and why you fell in love with it in the first place. What features sang to you, and how can you highlight these to appeal to a new buyer?
Pricing…
Many years ago, it became popular for a seller to add a few thousand pounds to their asking price to allow wiggle room in the negotiation with buyers. There was also the £000,999 pricing strategy popular with second-hand car sales that ensured the marketing price looked cheaper than it was. But these concepts are outdated now, and buyers are savvy to them. Marketing your property at a well-researched, considered price to attract a buyer is much more effective. And the idea of one pound less than a price bracket makes absolutely no sense anymore because of the reliance on online marketing platforms that use a price bracket system to filter property searches. If a property is listed at £250k, it will show up in searches up to £250k and from £250k. But, if you advertised that property at £249,999, it would only show up in the first search of up to £250k, halving your potential exposure in the market and reducing the number of viewings.
Buyer psychology-
Confirmation bias…
When a buyer decides to buy a property, they want confirmation that what they buy is desirable to others. No one wants to buy a property that no one else wants, and no one wants to feel buyer's remorse after moving in that they've paid too much or bought something they shouldn't have.
Buyers' remorse…
Almost 40% of agreed sales in the UK fall through. Of course, some of these are through no particular fault, but some collapsed deals will inevitably be through a change of heart. If you have to persuade a buyer to buy your home, it's more likely they will change their mind later down the line. In an ideal world, a buyer will fall head over heels in love with your property and want to buy it at all costs, without persuasion, resulting in a nice secure deal.
If you can use an effective pricing strategy and ensure that the marketing message is targeted to your property's most likely buyer, you will appeal to the right audience. Consider your reasons for selling the property, and make sure you're not expressing your current distaste for your home in the way it's presented.
If you are trying to sell your home or considering putting it on the market, contact our property professionals for their expert advice on the best way to harness psychology to make the most out of your sale.