These last few months I've read some interesting research summaries regarding buyer psychology. One little tidbit: In a market like we now have with an abundance of inventory and thus choices for the buyer--a buyer's market--buyers are actually more likely to be dissatisfied with their purchase then buyers buying in a seller's market. Why? Because the wealth of options in a buyer's market creates a paralysis of choices. With so many options, it is harder to chose just one. The choice they make, when they finally do pick one, allows buyers to reflect on their purchase and say "we should have gone with..." "if only we had purchased...." A seller's market offer buyer's far fewer choices and thus far fewer reasons to second-guess thier decisions. Consequently, they are more content with thier decision. A second interesting tidbit of buyer discontent: While the common reasoning says buy the smallest, least expensive house in the most desirable neighborhood which will allow buyers to build more equity than purchasing the largest home, buyers are usually more satisfied later by buying the nicest home in less desirable neighborhoods. Why? Because a home is more than a business decision. Though we don't admit it, and may not consciously believe it, we do compare ourselves with our neighbors--Veblen's keeping up with the Jones theory. We are less content being the small fish than being the big fish. Huh.
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