{"id":10147,"date":"2025-02-14T12:54:17","date_gmt":"2025-02-14T12:54:17","guid":{"rendered":"https:\/\/www.bayut.com\/agentportal\/?p=10147"},"modified":"2025-02-14T12:54:20","modified_gmt":"2025-02-14T12:54:20","slug":"psychology-of-buyers-the-real-estate-edition","status":"publish","type":"post","link":"https:\/\/www.bayut.com\/agentportal\/psychology-of-buyers-the-real-estate-edition\/","title":{"rendered":"The Psychology of Buyers"},"content":{"rendered":"\n<ul><li><a href=\"#maslows-hierarchy\">Maslow&#8217;s Hierarchy Of Needs<\/a><\/li><\/ul>\n\n\n\n<p>Have you ever wondered what your clients are thinking during their property purchase journey?<\/p>\n\n\n\n<p>Knowledge of buyer&#8217;s behaviour is important in any sales field &#8211; real estate is no different. Buying behaviour of customers across industries is different; understanding your customers buying behaviours will help you plan how to sell to them.<\/p>\n\n\n\n<p>No matter where you are in your real estate career, this article will give you valuable insights into property seekers&#8217; motivation, needs and habits. You can also register for a workshop on this topic at Bayut Academy, our in-house training series for real estate professionals.<\/p>\n\n\n\n<p>Before we delve into understanding the average real estate buyer&#8217;s thought process, let&#8217;s take a look at the big picture and understand human needs using <strong>Maslow&#8217;s Hierarchy of Needs<\/strong>.<\/p>\n\n\n\n<h2 id=\"maslows-hierarchy\"><strong>Maslow\u2019s Hierarchy Of Needs<\/strong><\/h2>\n\n\n\n<p>This psychological tool is used to show the priority of different human needs. This pyramid of needs is divided into five categories, which are achieved in a hierarchical order starting with our basic needs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" src=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-B-15-02-1024x640.jpg\" alt=\"buyers needs maslow\" class=\"wp-image-10148\" srcset=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-B-15-02-1024x640.jpg 1024w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-B-15-02-300x188.jpg 300w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-B-15-02-768x480.jpg 768w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-B-15-02-640x400.jpg 640w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-B-15-02.jpg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Human needs are segmented based on their priority<\/figcaption><\/figure>\n\n\n\n<ul><li><strong>Physiological Needs:<\/strong> These are the basic needs for survival, such as air, food, shelter, and water. It is the driving force behind good property infrastructure because we as humans need access to resources to survive. At this very basic level, a house has the core purpose of functioning as &#8216;shelter&#8217;<\/li><li><strong>Safety Needs<\/strong>: Next, we move on to satisfying our need for security and stability. This includes your emotional stability, good health, a secure home and your overall well being. In real estate, this translates to clients looking for safer neighbourhoods, gated communities with security\/surveillance, etc.<\/li><li><strong>Love And Belonging:<\/strong> Moving up the pyramid is our need for love and belongingness. This relates to our desire to have connections and support systems. Factors such as family bonds, friends and social circles all play a role at this level.<br>Property seekers may want to live close to their friends, upgrade to a bigger place to start a family or live close to their hobbies and interests<\/li><li><strong>Esteem<\/strong>: Our higher-level demands begin with self-esteem needs. As humans, we want to feel valued and respected by our peers. In Maslow\u2019s hierarchy of needs, our esteem comes from the respect we get from others as well as our self-esteem. At this level, you can find clients seeking upgrades, investors with large portfolios or anyone looking for their dream property.<\/li><li><strong>Self-actualisation<\/strong>: The top of the pyramid focuses on fulfilling your full potential as a human being. This stage is vastly different for each individual; some people may see self-actualisation in buying a large luxury property, some may buy an office to start a non-profit, some may even decide to downsize or move away from the city and focus on spending time with their family and friends.<\/li><\/ul>\n\n\n\n<p>In real estate, these needs can help us understand a client\u2019s motivation behind looking for property. For example, someone at the <em>safety<\/em> stage may be looking for security and stability in the form of a gated community whereas a couple at the love and belonging stage may be looking for a place to raise their kids within a community tied to family and friends.\u00a0<\/p>\n\n\n\n<h2 id=\"types-of-buyers\"><strong>Types Of Buyers<\/strong><\/h2>\n\n\n\n<ul><li><strong>Savers<\/strong>: These are budget-conscious buyers who tend to do heavy research before making a purchase. They usually have firm expectations about costs and may resist the urge to spend money. Savers make up 24 per cent of the market.<\/li><li><strong>Spendthrifts<\/strong>: This category of buyers spend freely and indulge in various purchases. They are not price-sensitive and are usually driven by emotion. While the spendthrifts are any salesperson\u2019s dream customer, they account for only 15 per cent of the market<\/li><li><strong>Average Spender<\/strong>s: Average Spenders account for the majority of buyers in the market. They tend to have planned budgets, save well in advance and tend to make decisions slowly. They carefully consider a product&#8217;s features and the value it provides and are heavily influenced by facts and data.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"640\" src=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-C-15-02-1024x640.jpg\" alt=\"buyer persona \" class=\"wp-image-10165\" srcset=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-C-15-02-1024x640.jpg 1024w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-C-15-02-300x188.jpg 300w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-C-15-02-768x480.jpg 768w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-C-15-02-640x400.jpg 640w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/Psychology-of-real-estate-buyers-C-15-02.jpg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption><em>Every buyer has a unique persona<\/em><\/figcaption><\/figure>\n\n\n\n<p>When looking at the types of buyers, keep in mind that income level has no connection with the type of buyer an individual is. There can be extremely wealthy savers and spendthrifts with an average income.<\/p>\n\n\n\n<h2><strong>Types Of Buying Behaviour<\/strong><\/h2>\n\n\n\n<p>There are four types of buying behaviours, that vary based on the amount of research involved with the purchase<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img width=\"1024\" height=\"444\" src=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/ROUTINE-BUYING-1024x444.png\" alt=\"\" class=\"wp-image-10194\" srcset=\"https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/ROUTINE-BUYING-1024x444.png 1024w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/ROUTINE-BUYING-300x130.png 300w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/ROUTINE-BUYING-768x333.png 768w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/ROUTINE-BUYING-1170x508.png 1170w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/ROUTINE-BUYING-880x382.png 880w, https:\/\/www.bayut.com\/agentportal\/wp-content\/uploads\/2022\/02\/ROUTINE-BUYING.png 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Your research depends on the price of the item and how  <\/figcaption><\/figure>\n\n\n\n<p>It is important to note that real estate falls under the complex buying category and requires extensive research. This is because it is a long-term investment and involves a large amount of money. It can be very stressful to take out a long loan, which is why buying property is usually a long and slow decision-making process.<\/p>\n\n\n\n<h3><strong>Real Estate Buying Is a Complex Behaviour<\/strong><\/h3>\n\n\n\n<ul><li>It costs a lot of money<\/li><li>It\u2019s a long-term investment<\/li><li>Involves extensive research\u00a0<\/li><li>Heavily driven by emotions<\/li><li>Slow\u00a0decision-making\u00a0process<\/li><\/ul>\n\n\n\n<h2><strong>The Science Behind Decision-Making<\/strong><\/h2>\n\n\n\n<p>There are two types of trust: <strong>Connection<\/strong> and <strong>Credibility<\/strong>.<\/p>\n\n\n\n<p>When we say connection, we mean:<\/p>\n\n\n\n<ul><li>People buy from people they <strong>trust<\/strong>.<\/li><li>And they trust people they <strong>like<\/strong>.<\/li><li>And they like people they <strong>know<\/strong>.<\/li><\/ul>\n\n\n\n<p>When we say credibility, we mean:<\/p>\n\n\n\n<ul><li>People buy from people they <strong>trust<\/strong><\/li><li>And they trust people they <strong>respect<\/strong><\/li><li>And they <strong>respect<\/strong><\/li><\/ul>\n\n\n\n<p>When talking with clients, which out of the two should you prioritise?&nbsp;<\/p>\n\n\n\n<p>It\u2019s a connection!<\/p>\n\n\n\n<p>To really build the trust that comes from connection, it is essential to be:<\/p>\n\n\n\n<ol><li>Authentic (stay true to who you are)<\/li><li>Humble (check your ego at the door)<\/li><li>Honest (giving accurate and real information)<\/li><li>Vulnerable (admitting when you don\u2019t have all the answers)<\/li><\/ol>\n\n\n\n<p>To really build the trust that comes from credibility, it is essential to show your:<\/p>\n\n\n\n<ol><li>Knowledge (of the market, project, area, clients\u2019 needs, etc.)<\/li><li>Skills (communication, negotiation, emotional intelligence, etc.)<\/li><li>Capability (maximise value)<\/li><li>Insight (into real estate, the market, the process, etc.)<\/li><\/ol>\n\n\n\n<h2><strong>The Brain Chemistry of Trust<\/strong><\/h2>\n\n\n\n<p>As humans, we produce hormones to control several bodily functions. Out of all the hormones, there are two hormones that play an important role in buyers making decisions.&nbsp; The first hormone is oxytocin, which plays a role in building trust and can be leveraged to your advantage. The second hormone, cortisol, is the stress hormone that you want to avoid flaring up in your clients.&nbsp;&nbsp;<\/p>\n\n\n\n<p>We can build oxytocin by engaging in <em>relational selling<\/em> and using empathy. For instance, if a client says, \u201cYou know what, we are going to wait,\u201d we can reply with empathy by saying, \u201cI get  that buying real estate is a big deal, and it\u2019s normal to be nervous at this stage; tell me what\u2019s got you concerned?\u201d<\/p>\n\n\n\n<p>Conversely, we can inadvertently build cortisol when we start our first conversation by asking questions like, \u201cCan I get the reference number?\u201d \u201cIs this cash or mortgage, and when are you looking to move.\u201d These questions could potentially stress a client out as we are not getting to know their needs; it sounds like we are trying to close the deal on the first phone call.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/lh7-us.googleusercontent.com\/TnX8_u8LT2WrOc5Jtm6vbsA0KCL_mJwZgIfA32bVS9IlG8lGmD6FrDy3_q_J4l9sV0z9BCQbux_d_eBpV4VYp1U4H06vVbZSFZ9e-s4rZX8hSZ0y-wE3FOTRDv_SgzXcDRFoCyeAoq59tQC9iNNbFtw\" alt=\"\"\/><\/figure>\n\n\n\n<h2 id=\"the-buying-process\"><strong>The Buying Process<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/lh5.googleusercontent.com\/V9wO4nlHszudxgAvuwUeA582c5IDFnMMW_bZ1MAdDbma1M_4coHb5a-ioqczPfmdN6FfDjJxwseHZawIsZwThIU8VgwzekL6J8SIG-MsSbsPElqMuDU5k78BfVF1D7RUmHlcxSWj\" alt=\"buying process\"\/><figcaption><em>The buying process, in brief<\/em><\/figcaption><\/figure>\n\n\n\n<ul><li><strong>Need Recognition<\/strong>: Any purchase begins with recognising a need. If you\u2019re walking down the street and start feeling thirsty, that\u2019s you recognising the need to get a beverage. Similarly, property seekers have various needs, they may be looking to start investing, upsize, downsize, buy their first home, etc. The possibilities are endless.<\/li><li><strong>Information Search<\/strong>: Once you recognise a need, the next step is to look for information. This can be doing a Google search on popular areas, looking at listings on Bayut or getting recommendations from friends and family.<\/li><li><strong>Explore Options<\/strong>: This is when customers start arranging viewings and exploring different areas. They will be making key decisions about their requirements, such as the number of bedrooms they want and the type of property they prefer.<\/li><li><strong>Evaluation of Alternatives<\/strong>: At this stage, the buyer has already viewed several options that suit their interests and is now ready to choose their ideal property. This is done through critical evaluation based on various factors such as quality, price, and availability.<\/li><li><strong>Purchase Decision<\/strong>: Here, the property seeker decides to go forward with the purchase. This is when they arrange funds, apply for a mortgage, and execute paperwork.<\/li><li><strong>Post Purchase Evaluation<\/strong>: In this last stage of the buying process, the property seeker evaluates their purchase decision. This is a key stage as it is the perfect time to request referrals and testimonials.<\/li><\/ul>\n\n\n<style>table#tableTopHeader716866,#tableTopHeader716866 td,#tableTopHeader716866 th,#tableTopHeader716866 caption{border:0;}#tableTopHeader716866 th[scope=\"row\"]{text-align: left;}#tableTopHeader716866 .mobile{display: none;}#tableTopHeader716866 .content td{text-align: center;}#tableTopHeader716866 .content td{padding: 10px 0;}#tableTopHeader716866 .content:nth-child(even) {background-color: #f7f7f7;}#tableTopHeader716866 .content:nth-child(odd) {background-color: #D1EDE1;}#tableTopHeader716866 th[scope=\"col\"]{text-align:center;}#tableTopHeader716866 th[scope=\"col\"] div:nth-child(1){border-top: 2px solid #000000;display: inline-block;border-bottom: 2px solid #000000;padding: 2px 5px 3px;margin-bottom: 10px;}@media only screen and (max-width: 600px) {#tableTopHeader716866 th[scope=\"row\"],#tableTopHeader716866 td {display: block;}#tableTopHeader716866 th[scope=\"row\"]{text-align: center; padding: 20px 0 10px;}#tableTopHeader716866 .desktop{display: none;}#tableTopHeader716866 .mobile{display: block;}.#tableTopHeader716866 content td div:nth-child(1),#tableTopHeader716866 .content td div:nth-child(2){display: inline-block; width: calc(50% - 10px); padding: 5px; vertical-align: top; text-align: left;}#tableTopHeader716866 .col-head{font-weight: bold; padding: 10px 0 5px;}#tableTopHeader716866 .content td{padding: 10px 0; margin: 10px; background-color: #ffffff;}#tableTopHeader716866{border-spacing: 0 15px;}}<\/style>\n<table width=\"100%\" border=\"0\" cellspacing=\"2\" cellpadding=\"0\" id=\"tableTopHeader716866\" class=\"datatabletopheadfilled\" dir=\"ltr\">\n<tbody>\n<tr class=\"header desktop\"><\/tr>\n<tr class=\"header desktop\">\n<th scope=\"col\">\n<div class=\"col-head\">Spendthrifts<\/div>\n<\/th>\n<th scope=\"col\">\n<div class=\"col-head\">Savers<\/div>\n<\/th>\n<th scope=\"col\">\n<div class=\"col-head\">Average Spenders<\/div>\n<\/th>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Spendthrifts<\/div>\n<div class=\"values\">Tap into the buyers\u2019 emotions<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Savers<\/div>\n<div class=\"values\">Be straightforward, honest, and precise<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Average Spenders<\/div>\n<div class=\"values\">Create a balance between price and quality<\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Spendthrifts<\/div>\n<div class=\"values\">Highlight the unique features of the property<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Savers<\/div>\n<div class=\"values\">Support your points with data<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Average Spenders<\/div>\n<div class=\"values\">Overcome client fears using warranties\/guarantees<\/div>\n<\/td>\n<\/tr>\n<tr class=\"content\">\n<td>\n<div class=\"mobile col-head\">Spendthrifts<\/div>\n<div class=\"values\">Leverage marketing<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Savers<\/div>\n<div class=\"values\">Highlight value for money<\/div>\n<\/td>\n<td>\n<div class=\"mobile col-head\">Average Spenders<\/div>\n<div class=\"values\">Don\u2019t be afraid to ask for the close <\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p>For more educational articles just like this, check out our <a aria-label=\"undefined (opens in a new tab)\" href=\"https:\/\/www.bayut.com\/agentportal\/blog\/\" target=\"_blank\" rel=\"noreferrer noopener\">Content Corner<\/a> or register for one of our interactive workshops at <a aria-label=\"undefined (opens in a new tab)\" href=\"https:\/\/www.bayut.com\/academy\" target=\"_blank\" rel=\"noreferrer noopener\">Bayut Academy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Based on a popular session from Bayut Academy, we look at buyer behaviour, the buying process,  influences and more during their property purchase journey.<\/p>\n","protected":false},"author":7,"featured_media":10164,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[381],"tags":[426,545],"category_group":[],"yst_prominent_words":[79,140,67],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v14.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Psychology of Buyers: The Real Estate Edition<\/title>\n<meta name=\"description\" content=\"Based on a popular session from Bayut Academy, we look at buyer behaviour, the buying process, influences and more during their property purchase journey.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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