Consumers »

What exactly are buyers and sellers seeking these days? “Nordstrom service, Disney innovation, and K mart prices,” joked a top Chicago broker speaking recently to an audience of real estate professionals.

He had the audience hooked, but after the laughter subsided, the group moved on to other topics-never truly touching on the critical theme that he’d humorously hinted at.

So, what do consumers really want? How do they make decisions about buying and selling? And just how self-aware are they about what influences those decisions?

Living in an information-soaked age where all who desire it have easy access to data about the economy, consumer spending, and local housing markets doesn’t inherently make finding the answers easier.

A host of consumer behavior specialists from the halls of academia and market research are providing some important clues, but how do those clues translate into practical advice?

A good deal of decision-making about the largest purchase most people ever make can appear irrational, according experts.

No matter how long you’ve been in the business, you may still sometimes be amazed at the mistaken priorities of many buyers as they search for their perfect home. And don’t forget the seemingly whimsical approach they take to determine fair pricing.

Similarly, a fuller understanding of the complicated thought patterns of sellers and the emotional landmines embedded in the closing process may persuade you to reexamine the way you work with consumers.

Armed with more meaningful insights into what drives people’s actions-or inaction-when buying or selling a home, you’re likely to see improvements in your relationships with clients. That, in turn,  could well propel your business to the next level and provide a welcome business advantage during these tough economic times.

Closing the Perception Gap

The relationship between sellers and buyers in some ways mirrors the tango between presidential candidates and voters. Both sides need each other to further their goals, but the potential for misunderstanding and mistrust is enormous. In real estate, perception gaps can lead to tension-filled negotiations and derailed transactions.

“The seller’s big fear is always that the buyer might walk away. But sellers tend to underestimate how attached a buyer becomes to a home as soon as the offer is made, even before it is accepted,” explains George Loewenstein, professor of behavioral economics at Carnegie Mellon University, who studies the role of emotions in consumer decision making. “The truth is that buyers feel they own the place as soon as they make an offer.”

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Future of Real Estate, Internet Marketing »

Social networking - perhaps you’ve heard of it before, but are not quite sure what it means?

Social networking is the grouping of individuals into specific groups, like small rural communities or a neighborhood subdivision… if you will. Although social networking is possible in person, especially in schools or in the workplace, it is most popular online. This is because unlike most high schools, colleges, or workplaces, the internet is filled with millions of individuals who are looking to meet other internet users and develop friendships and business relationships, too.

When it comes to online social networking, websites are commonly used. These websites are known as social sites. Social networking websites function like an online community of internet users. Depending on the website in question, many of these online community members share a common interest such as hobbies, religion, or politics. Once you are granted access to a social networking website you can begin to socialize. This socialization may include reading the profile pages of other members and possibly even contacting them.

The friends that you can make are just one of the many benefits to social networking online. Another one of those benefits includes diversity because the internet gives individuals, from all around the world, access to social networking sties. This means that although you are in the United States, you could develop an online friendship with someone in Oregon or Switzerland. Not only will you make a new friend, but you just might learn a thing or two about a new culture and new languages. And, learning is always a good thing.

As mentioned, social networking often involves grouping specific individuals or organizations together. While there are a number of social networking websites that focus on particular interests, there are others that do not. The websites without a main focus are often referred to as “traditional” social networking websites and usually have open memberships. This means that anyone can become a member, no matter what their hobbies, beliefs, or views are. However, once you are inside this online community, you can begin to create your own network of friends and eliminate members that do not share common interests or goals.

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