The Paradox of Choice
Have you ever stopped to think about the Paradox of Choice when it comes to house hunting? I’m no psychologist, but applying Barry Schwartz’s phenomenon would save home buyers a lot of time.
The phenomenon at the core is that:
Too many choices can be overwhelming
It creates an inability to make a decision and/or
You have regret once you do decide
Why you haven’t been able to buy:
In the current market, you may be thinking that you haven’t bought because you haven’t found what you are looking for. I encourage you to think about:
Are you focusing on more than 2 or 3 suburbs?
Are you looking for houses, townhouses and/or apartments?
Are you considering floorplans of different sizes e.g. both 2 beds and 3 beds?
Would you consider unrenovated right up to recently renovated?
Did you answer yes?
If you answered yes to any (hopefully not all!) the questions above, then lack of stock on market is not your issue. The issue is you are not clear on what you are looking for, and will struggle to make a decision when you find it.
How to avoid the paradox of choice
Be very specific about what you are looking for. Compare the two scenarios below:
Looking to purchase a 2 bedroom + study, or a 3 bedroom apartment. Must have parking. Considering Marrickville, Newtown, Alexandria & Erskineville. Budget range $800,000 - $1,300,000.
Looking to purchase a 2 bedroom apartment in Newtown, with parking. Budget $900,000 - $1,100,000.
Scenario one has over 7,000 potential properties that fit the criteria, of which 47 of these are currently on market (0.67%).
Scenario two has about 800 potential properties that fit the criteria, of which 4 of these are currently on market (0.5%).
You don’t need to find 47 properties that are perfect, you only need to find ONE!
I’m not saying that of the 4 options on market right now for scenario two any of them would be perfect for my fictional buyer. However, you can pretty quickly make a decision about four properties. If one of them was what you are looking for, you’d know it.
If you are weighing up 47 options, then it will be very difficult to know if the property is right for you because you have so many options! You’ll probably even be considering that 47 new properties will be coming on market soon, and thinking one of those might be better.
Whether you are thinking of working with a buyer’s agent or not, being specific and clear about what it is you are looking for is the best thing you can do to ensure you are in a position to buy confidently and quickly.
