Real Estate Purchases Driven by Dopamine
By: Sarah Greenleaf, PR Intern | August 28, 2009
What is it that makes us buy a home? While some may argue that they bought their home because of its resale value, when you get down to it (really far down on the neuron level) it turns out that many people purchase their homes based on their dopamine receptors.
Real estate writer Katherine Salant investigates this phenomenon in her fascinating column, “House Love, House Lust, How We Decide to Buy.”
In her article, she pulls out findings from the book, “How We Decide,” written by Jonah Lehrer. Evidently, during the first few minutes you spend in a home, your sensory organs feed data straight to the emotional centers of your brain. If the colors, smells and temperature are satisfactory, dopamine receptors go into overdrive, making you want the house and want it now.
Experienced real estate agents know this, and they watch you closely during those first few moments. The emotional response has its dark side because it gives no consideration to what we will do with things once we have them. Most people don’t use their formal living spaces, though those same spaces triggered that emotional reaction and want.
It is more important to consider the flow and floor plan of a house than a fabulous kitchen with granite counter tops and stainless steel appliances. You may love the look, but it will be more important to be able to use the space you buy.
So, if you’re buying a home, the next time you walk into a house for sale, ask yourself if your dopamine receptors are overriding your rational thinking. You really don’t want a 2-hour commute for a killer kitchen, do you?
- Stumble it!
- Categories: Friday Fun, Real Estate
Comments
18 Comments so far
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Ralph D Bredahl on August 28, 2009 11:56 am
Very true but with the 10 day inspection perios (at least in Arizna) plenty of time for a buyer to get “real”
DebtFree on August 28, 2009 2:49 pm
Those who make the largest financial decision of their lives based upon emotions, rather than an honest assessment of their finances (both short and long term) end up living beyond their means, and in foreclosure.
Everyone wants to “own” a kitchen like the one depicted above, with its glorious $5,000 6-burner Viking stove, but does it actually make sense? Is that what is important? Is that worth working longer hours, spending time away from your children?
Life isn’t about living in a catalog, but enjoying the limited time we have here on Earth with the ones we love.
Gainesville Realtors on August 28, 2009 3:38 pm
This is true. What’s really amazing is watching the differences when I take investor clients vs families. Like night and day. Investors usually see homes for what they are, concrete, wood, and drywall. Sometimes families almost have me convinced the home they want has magical superpowers that will make their lives complete - until they get the bills.
Baltimore Homes on August 29, 2009 3:40 pm
Real estate is 40% sales and 60% psychology. You may think I am crazy, but the responses and feedback I initially get when we enter a house will generally dictate my actions. In other work a good sales agent will feed off the buyer’s responses.
As for what will sell? We all know that the general quality renovation with neutral colors and a new kitchen and bathroom will appeal to the masses. However, location and proximity in my mind are a more important factor. I would rather have a terrible house in a great neighborhood.
Brandon Green on August 29, 2009 7:30 pm
Cool-looking island!
Release Equity on August 30, 2009 10:24 am
Absolutely, I agree with Brandon.
Karenmobile on August 30, 2009 10:25 am
Has to to be a superb great view.
Finance on August 30, 2009 12:51 pm
and don’t forget about the neighborhood as well
How Tucson Home Buyers Pick A House | The Housechick Blog on August 31, 2009 6:32 am
[...] post from the Zillow blog that puts a little science behind what I’ve always told my sellers – home buyers make [...]
Karenmobile on August 31, 2009 7:40 am
Absolutely, this one looks the biz.
Release Equity on August 31, 2009 7:41 am
Neighborhood and views, top sellers every time!
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[...] post from the Zillow blog that puts a little science behind what I’ve always told my sellers – home buyers make [...]
How We Pick The Home We Buy : Buy Tucson Real Estate on August 31, 2009 9:31 am
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Bob on August 31, 2009 10:57 am
I actually see many first time buyers either go one of two ways. They either want to buy every home they see, or they want to look at 100+ homes so that they don’t miss a good one. Our jobs, as I see it is to really understand what they wnat and limit the showing to the homes closest to their requirements
G1 on August 31, 2009 2:49 pm
I Guess being a mindreader helps a little..
Credit Restoration CRB on September 21, 2009 8:53 am
I agree, Neighborhood and views is what sells for most! Beautiful kitchen!
Fresno Bankruptcy on October 22, 2009 1:23 pm
It’s like being in a car dealers office. “How much payment can you afford”? “You should to get that under car sealant we’ll just ad it into your monthly payment”.
When the dopamine starts flowing during a purchase decision it’s usually a recipe for stupid decisions.
Cherry Creek Realty Services on November 4, 2009 11:20 am
Very interesting! This is true because location to work can sometimes play a factor in choosing the right home. Also, if a home is poorly built you won’t be as apt to purchase it and your emotions will be down, thus you won’t want to purchase.