The Psychology of the Negotiation

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When selling a home, as a property owner or professional, the goal is to achieve the highest sale price possible. However the balance must be right- too high and you may not get a buyer, too low and you may be missing out. Continue reading to learn some psychology tips to have the most successful sale possible.

Psychology Tip #1: Confirmation Bias

‘The tendency to interpret new evidence as confirmation of one’s existing beliefs or theories’

This may mean that when a buyer thinks a house is overpriced, they will look out for opportunities to confirm their beliefs. Even small things such as a burned out bulb, or dirty appliances can lead to a buyer contemplating what else may be wrong with a place.

 

To reduce this, it is important to take a walk around your property with fresh eyes, maybe get a friend or family member to have a look for anything that can be easily improved or replaced. These inexpensive refinements can significantly reduce potential buyers’ creating price reducing mental notes with your property, making a successful sale promising.

Psychology Tip 2#: Anchoring

Anchoring bias is a cognitive bias that causes us to rely too heavily on the first piece of information we are given about a topic’ 

 

It is only possible to make one first impression so it is essential to make it perfect. The best way to do this is to improve your properties’ curb appeal. Clean up any debris, mow the grass, anything to make the first view of the house appealing. If possible have the potential buyers to enter through the front door, rather than the side door or garage.

Psychology Tip #3: Overconfidence Bias

Psychology tip #3: Overconfidence Bias

‘Overconfidence bias is a general tendency of people to overestimate their skills, authority, and knowledge due to excessive confidence.’

 Although it can be tempting to sell alone, and it seems to be a relatively simple process, marketing a property at the wrong selling price can result in you being cut short of money or even not selling at all. You are more likely to get a buyer when you leave it to the professionals.

To summarise: 

When putting your property on the market, attention to detail is key. By keeping note of these tips, along side the help of professionals, selling your property should be a rather straightforward and simple process.

 

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