Real Estate Round-Up: Motivation
Last updated 6/26/2020 at 12:48am
Motivation, a noun, is the reason or reasons one has for acting or behaving in a particular way, the general desire or willingness of someone to do something. It is similar to incentive, enthusiasm, inspiration and rational.
There are four types of motivation according to “Changing Minds” authors, E.L. Deci and R.M. Ryan.
Extrinsic comes from outside of us. We do it because we are impelled to.
Intrinsic is done for internal reasons. We do it to align ourselves with a value or pleasure.
Introjected is similar to intrinsic in that it is internalized, however no action is taken.
Identified is where a person knows that something needs to be done but has not yet decided to do anything about it.
Buyers come with all different motivations and depending on those motivations, take or don’t take action. We meet all four types every week.
I want to share two stories with you that occurred last week. They provide a glimpse into motivation.
We had a buyer contact us from Olympia, Washington. They were motivated, extrinsically and intrinsically. They sold their home in four days, and they wanted to move to a more desirable location. Because their younger children were enrolled in a private school in Bonsall, they had an open geographic area they were interested in. Finding the right home was more about the amenities of the home and the land around the home, than being in any specific community.
Like all buyers who are searching in the current market, they were always looking online for the new home. They understood that housing inventory was very low, and what they wanted in a home and property was very personal, so they came armed with everything they needed to jump when that home became available. And jump they did.
The moment they found the home online they contacted us to get a few more details about the property. We immediately reached out to the listing Realtor, for answers to their questions, reported those answers back to the buyers and we were off to the races. Sight unseen, they wrote an offer.
We discussed their strategy and how best to position themselves for acceptance on the property. Afterall, their offer was contingent on the close of escrow of their current home, and, they had not personally visited the home they were making an offer on. They wrote a strong offer, so that those two weaknesses would pale in comparison to the benefits of their offer.
Their offer was accepted in less than 24 hours, even though the property had multiple showings from the time it hit the multiple service listing. So, what helped them get acceptance? Motivation. Unlike the other buyers who had actually visited the property, our buyers took action. They didn’t fall into the category that many buyers fall into of holding onto introjected or identified motivation.
Yes, maybe this week, there will be another home that will meet their needs and desires. Yes, maybe this week, there will be another home that will be priced a little better. But yes, interest rates could change and yes, another home might not become available.
The second story is quite different. This time, another Realtor contacted us to show one of our listings. She was excited. She said that the property appeared to have “all the checkboxes” the buyer wanted in a property. She had been showing this buyer homes for nearly a year. I can’t imagine, but sadly it is too often true.
Chris Murphy met the Realtor and her clients at the property. They spent over an hour at the property. The buyers’ Realtor was even more excited now. It appeared that her clients had finally found their new home. It really did have everything that the buyers wanted in a home. Chris followed up with the buyers’ Realtor the next day, to find out that they still wanted to continue to look. They just weren’t sure about the home. It sounds like this buyer has introjected or identified motivation, both which produce no action.
So why do so many buyers seem to fall into the category of introjected or identified motivation? I wish I knew. We primarily work with sellers, but daily we meet with buyers’ Realtors, who are accompanying their buyers as they view the listings we represent. Far too many times, those Realtors have been showing the same buyer homes for weeks, even months, with no offers being written.
Perhaps the buyer is waiting to find the perfect home. It doesn’t exist. Or for prices to drop. That’s probably not going to happen given the shortage of housing inventory. Or for something else to occur, which may or may not occur. All the while, good property after good property gets purchased by a buyer who is truly motivated.
So, what’s the lesson? If you’re a buyer, get your pre-approval letter and make your list of what you want and need and make sure you know which of those are not an absolute. Then get with a professional, experienced Realtor who will showcase your strengths over your weaknesses and buy a home. Tomorrow will not necessarily bring you anything better than today.
Wrapping it all up, I have one more short-story I’d like to share with you about motivation. A few years ago, we had a buyer hire us to help them find their new home. Their current home was in escrow, so they needed to find something quickly. Their list of amenities included a view, a pool and single story.
They looked at quite a few homes, and within a week purchased a home without a view or a pool that was two stories. Why, because what they really wanted was a home with charm and character. In their case, the original categories became far less important than finding a home that they emotionally loved. This client was extrinsically and intrinsically motivated, so they made the purchase and moved into their new home.
Hopefully, if you are a buyer or you know someone who is a buyer, you can share this insight and help them move their motivation needle to the “action” side of things.
Kim Murphy can be reached at [email protected] or 760-415-9292 or at 130 N. Main Ave., in Fallbrook. Her broker license is #01229921, and she is on the board of directors for the California Association of Realtors.