Buying Real Estate – Property investors are only human
Shannon Molloy
Interesting new research about the emotional drivers behind property purchases cements the undeniable reality that investors are just like everyone else – sometimes susceptible to thoughts that go against their better judgment.
“I reckon another $10,000 will get this bad boy across the line,” the agent smiled, smoothing down his slick suit and nudging his Montblanc pen closer towards me. “Just write the new offer amount there and initial it, and I reckon it’ll be yours by the end of the night.”
I was sitting in the apartment in question – an oversized, unrenovated gem in an art deco masterpiece that’s fairly iconic in Brisbane. It had so much potential. I could picture all the things I’d do with a major renovation.
Mostly, I could see myself living there and telling people I lived there. I simply had to have it.
And that’s how I found myself in a silly position where I should have known better – desperate, determined and willing to pay just about anything for this property. To cut a long story short, the deal fell through. Despite offering more and more on four occasions, the stubborn sellers still felt they should get more despite a very flat market.
Even though I didn’t get it, I learnt a very valuable lesson on reflection. It’s one many of us discover, it seems.
Research commissioned by the Commonwealth Bank probed the psychology of buying a property and found the majority of people, whether they be homebuyer or investor, are prone to being driven by emotion on occasion.
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