Real Estate FOMO
Is a ‘fear of missing out’ influencing your property decisions?
I’ve been speaking with my sister recently and I really feel for her. Every weekend she has been attending inspections and auctions that result in her walking away head down and wondering if she will ever buy. A typical weekend for a lot of home buyers trying to get into the Sydney market.
Right now, it seems like you can’t catch the news or go to a dinner party without hearing about the current property market. From what is your interest rates to strong auction clearance levels, what’s going on in the real estate landscape is dominating conversations.
So, how can you make sure you keep a level head and not get caught up in the drama of the marketplace? To help uncover some of the key motivations and influences impacting homebuyers’ decisions, we commissioned a survey which looked at some of the factors impacting the purchasing process. By surveying 1,000 homebuyers and property investors, we uncovered that a ‘fear of missing out’ on the perfect property is influencing how quickly we purchase property.
So, how are homebuyers influenced by the fear of missing out ‘psyche’?
The research revealed the majority of home buyers (58 per cent) admitted to rushing in and negotiating a price on a property before they have done their due diligence.
Whether its family pressures, emotions or a good financial deal, our research also highlighted some of the key reasons Aussies are rushing in and buying property before they are ready.
- 65% told us they believe property prices are being steered by this fear of missing out.
- 89% of subsequent home buyers cite additional family pressures (a new baby, pregnancy, kids starting school etc.) as the reason that drives them to buy quickly.
- Investors also admitted to negotiating a price before doing their due diligence (55%) – though with differing motivations to subsequent home buyers. The research revealed they are driven to buy more quickly because they believe they have found a good financial deal and don’t want to miss out (30%).
So, how can you avoid the fear of missing out ‘psyche’ during the spring home buying season?
A competitive marketplace can increase the ‘fear of missing out’ on the perfect property. However, if you are looking to purchase a property this spring, it is important that you do not rush the process. All homebuyers should make sure they are going through the appropriate steps, before they begin negotiations on a property purchase. This includes things like doing your market research and due diligence, setting yourself a clear budget, and getting your finances in order by getting conditional pre-approval on your home loan.
Give me a call to discuss your FOMO problems today! 0403 084 762