Good Monday Morning!
The siren call of a “Once in a lifetime opportunity” may lure even the most frugal folks into spontaneous purchases they later regret.
Marketers are masters of presenting these “opportunities” in the right places at the right times.
Everything from the packaging of the product (Which may be more expensive to manufacture than the product itself) to the placement of the product in the store – Which aisle? – Where on the shelf? . . . and strategically crafted marketing designed to show up in front of the most probable Buyers when they are most vulnerable WRT to buying impulsively.
Strike while the iron’s HOT!
The illusion of “Scarcity” or “rarity” is essential for these marketers . . . “Buy NOW, or you’ll miss your ONE chance at owning this golden egg.”
im·pul·sive (imˈpəlsiv) – adjective
acting or done without forethought.
These marketers are preying on our societal Achilles Heal – A desire to keep up with the Joneses.
- When’s the last time you fell into the trance and made a completely silly purchase?
- Did you pay too much for something you don’t really need at a time when you didn’t have the “disposable income” to make such a purchase?
- How did you feel as you walked out of the store?
- Euphoric (Because you WON)?
- A little giddy because you did something completely irresponsible?
- Followed by justification: “I KNOW it was a ridiculous purchase of something I don’t need with money I don’t have, but I’ve worked hard and I DESERVE this.
Next morning . . . waking up to huge “Buyer’s remorse hang-over.”
Believe it or not, this happens frequently with House Buyers.
The sad part is that buying a house involves a LEGAL CONTRACT which makes it a tad more difficult to revers course later.
My observation is that a fairly high percentage of deals that are consummated prior to the house hitting the market make it to the closing table.
Yes! Some Buyers have “Love at first sight” experiences with a house and impulsively make an offer for fear that someone else might buy it out from under them.
acting or done without forethought
- Did I pay too much?
- I can’t remember the floor plan
- Was there a pantry in the kitchen?
- Was that a railroad track in the back yard?
- I wonder if that creek in the side yard floods the house.
Of course, some of these issues can be discovered in the Home Inspection and would be valid reasons to terminate the transaction, but why the need to go to all that expense due to a rash decision?
In a real estate like the one we are experiencing here in Nashville, TN where the inventory of available houses is VERY LOW, Buyers are more apt to take action on a house they don’t actually know well enough to love.
Buyers may learn of a house that is soon to be on the market and will look at it “Pre-Market” – then make a hasty decision to buy it for full asking price just to be sure it doesn’t go on the market and sell to someone else. Absent all other competition, there is no way of knowing what the “True Market Value” is.
Of course, there’s the rationale that the real value is the one a Buyer and Seller agree it to be . . . but does that really hold water?
For what it’s worth, “Forethought” is important when making purchases (ESPECIALLY big ticket items like houses and cars).
My personal rule is that I seldom, if ever, buy ANYTHING at first look.
I don’t buy because the Salesperson tells me the “Special Pricing ends today” because it doesn’t do me much good to buy something I don’t really need at a great price.
Sometimes I find myself intentionally slowing House Buyers down as they charge forward with intent to make and offer especially when I see “red flags” – things that I know the Buyer wants that are missing,
I also caution sellers against allowing “Pre-Market” showings for this very reason. The first 3 weeks of every new House listing is a critical period of time that can be neutered by a “pre-Market” offer that ends up failing due to Buyer’s remorse.
We always encourage our House sellers to expose their house to the WHOLE market in order to get the Highest Price and best terms from a Buyer who has a high probability of closing the transaction on time.
Of course, This is how we roll at Pareto Realty.
Our focus is on keeping our clients “Safe” as they navigate the House Buying or selling process.
Connect with me when you’re in the mood for a move.
PS – Don’t forget to tell me your most recent impulsive purchase experience