To be ‘Emotional or not?’
“In what way?” some may ask, while others might just jump to the conclusion that emotions are an innate component of the human race and therefore not much of a debate to be had in that regard. However when you consider the extent of the power of our emotions and the impact it has on so many facets of life, it might be worth reading on to determine the debate for yourself.
Research findings suggest that our emotions and feelings play a decisive role in purchasing which is often triggered by seeing a product or upon exposure to a well-crafted promotional message. Most times our decision to purchase or choose a property (in this context) or not, depends on motives which are most times dependent on thoughts, urges, feelings or emotions. If emotions are so powerful,then there is every likelihood that from time to time you maybe be losing out on an ideal choice because of the extent to which you have allowed your emotions to play a role in your decisions.
Have you taken time to think about why you decided to spend more money on your ‘Dream home’ instead of choosing the other house presented to you by your agent? Can you honestly say your decisions were as a result of thorough research and considerations such as economy and social knowledge? Or have you relied solely on instinct?
According to IBM Magazine, it is said that buyers do not make logical, rational decisions; they make emotional decisions and then justify those decisions after. As an emotional buyer, you are most likely to negotiate less effectively therefore cheating yourself. Emotional intelligence therefore is key. It is the ability to identify and manage your own emotions and to harness those emotions when applying them to tasks like thinking and problem solving.
Now that we know this, let us consider how we can reduce the effect of our emotions when it comes to making a major decision especially in real estate. First, we need to be aware of what emotions are triggered and augmented when we hear the glossy and enticing words of the sales person to leading us into the purchase of that property or when making that decision to move in.
Your emotions may stem from the interplay of any of the following:
- Greed. “If I make a decision now, I will be rewarded.”
- Fear. “If I don’t make a decision now, I’m toast.”
- Altruism. “If I make a decision now, I will help others.”
- Envy. “If I don’t make a decision now, my competition will win.”
- Pride. “If I make a decision now, I will look smart.”
- Shame. “If I don’t make a decision now, I will look stupid.”
So what do you need to do in order to control your emotions from superseding your logical, rational reasoning and robbing you off your hard earned Naira?
Here are a few suggestion we recommend:
- Don’t be bullied by time: It is okay to fall in love with a property but don’t give yourself unnecessary pressure. Take time to mull over it.
- Keep emotional attachment at arm’s length: This might be easier in theory than in reality but it is advised that you come with a plan and an expectation of what you want. Focus is highly important here.
- Gut/Instinct: This doesn’t work all the time and should not be solely depended on. Research, have a plan and Stay focus on it. You need to ask certain questions such as the type and size of the house, how close is it to a school, grocery store, the bus stop or the most you are willing to pay etc. If you are buying it with a partner, then you both have to agree on a mutual criteria so at the end of the day, you are both singing the same song to the agent.
- Analyse: We assume that you would have taken pictures and written certain things about the different properties that have been shown to you. However be sure, to look at the pros and cons of all of the properties you have visited, compare prices, best features for each of them and which one meets your most important criteria. This will give you a clearer view.
Once you have completed these recommended steps, you’ll notice that your emotions are nicely tucked in the backseat of your mind giving way for a more rational, logical and better choice. Decision making in real estate can be daunting, overwhelming and scary but a grounded approach to such decision takes the edge off the process.
Our Property Transactions team, are skilled in helping you make informed and grounded choices about your real estate needs. If you are currently seeking to make a decision in real estate, then contact us for advice and guidance.