Understanding buyer preferences is essential because it can help you know your target market. The real estate market is different compared to other industries. Here, buyer behaviour can drive property decisions.
Have you wondered what buyers think before making a home purchase? What are the driving factors – for them to make a decision? If you know average buyer behaviour, you can give them the support and information they need to make property-related decisions.
However, property-related decisions are influenced by economic, emotional, and psychological factors. In the post below – we will look at factors determining buyer behaviour. Real estate agents must explore this aspect to set a foothold.
The Buying Process
A purchase decision begins with understanding the need. A property buyer makes a purchase decision based on needs like first property, investments, downsize, etc.
Once you recognize the need, you can then look for information. After that, you can explore different property areas. Customers start exploring listings and home-buying options to buy a property.
It’s time to move to alternatives. After critical evaluation, the buyer will look for factors like price and quality. The final stage is the purchase decision, where the buyer looks to purchase the property after evaluating all the aspects with a price.
The post-purchase evaluation is the best time for referrals and testimonials. Now that you know the buying process, let’s move to types of buyers.
Types Of Buyers:
No two buyers are the same, and their behaviours are also different. Some may spend more to buy a property, and some are average spenders. Let’s take a look at the three types of buyers.
Savers
As the same suggests, these buyers are budget-conscious. They do a lot of research before buying a property. Savers are buyers who want to save money on property. Besides exploring options, they have firm expectations about the property costs.
Despite choosing the best property, they expect to get discounts and deals.
Also, they have a fixed budget in mind and settle for the same amount. Do you know there are more than twenty-four percent of savers in the real estate market?
Real estate companies also understand their needs and offer them properties based on similar expectations. It’s essential to understand their buying behaviour before a property deal.
Spendthrifts
Next on the list is spendthrifts. The majority of such buyers are in the market. The best part is they are not price-sensitive as savers. They believe in purchasing property based on evaluation and emotions.
For instance, if an average spend thrift buyer likes a property with modern amenities and appeal, then there is a chance that he may go ahead and buy it.
In short, emotional decisions drive these buyers. However, these account for 14 to 15 per cent of customers in the market. Still, real estate brokers lure these customers by offering them discounts and deals on properties.
Average Spenders
Average spenders don’t worry about budget or have specific expectations. They invest in properties they like. In addition, their decision is governed by planned budgets and facts.
They like to make property decisions based on stats. Also, they work out the budget depending on many factors. Despite the evaluation, the decision is slow.
You can’t expect them to invest in a property at once. You may have to coax them for a decision. Additionally, they consider the features and location of the property before purchase. There are not many average spender buyers in the real estate market.
Factors That Drive Buying Decision:
It’s vital to know about the factors that drive the buying decisions. If a real estate broker knows about these factors, it will help him make better property-related transactions.
Emotional Attachment
The place where you stay is sacred to you. As a homeowner, you will have an emotional connection with your home. Emotional connection is the foremost factor that drives the property-related decision.
For instance, a buyer may have an emotional attachment to a location. Also, it’s natural to have an attachment to the locality – where the buyer has lived for years.
Real estate agents must be aware of the emotional attachments a buyer can have. It is the main factor that drives the buying decision. Most buyers make purchase decisions based on the vibe of the property.
Social Factors
Social factors also play a role in buying behaviour. How? Social influence can impact the decision-making process. Buyers may seek validation from family members to make purchase decisions. Other than this, they look at market trends to decide. For instance, if the current market value is high, some buyers wait for the right time to purchase the property.
The real estate market keeps fluctuating, and economic factors can drive these fluctuations. Also, positive feedback from people can drive purchase decisions. Buyers are compelled to make a decision based on social factors.
Financial Factors
A real estate broker must understand the financial situation of home buyers. Understand the mindset of the buyer. Know whether the buyer is open to buying a budget or luxury property. Ideally, you can discuss it with the property buyer to know about their budget.
As mentioned above, spendthrift buyers may be ready to overspend, but savers look for budget recommendations. By evaluating this factor, you can dwell on the purchase decisions.
Economic Factors
Economic factors can influence buying behaviour. Some factors that affect buying decisions are home loan interest rates, access to credit, affordability, and demographic trends. A buyer’s ability to obtain finances can affect the real estate market.
Understand Your Buyer
Understanding buyer behaviour is significant for real estate brokers. Also, leveraging insights into buyer behaviour and utilizing different tools can help. Buyers look for connection and credibility before buying a property. You can focus on these two aspects to help them with home-buying decisions. Also, as a real estate broker, you must stay updated with market trends.