31 Jan USING THE PROPERTY AS A TOOL IN BUYER PERSUASION
How can your property persuade? It’s a classic question. At some point in our lives, we’ll have to persuade someone to do something, to hold on to something, or to believe in something. How exactly can we do that? Social Psychology offers us a glimpse of the theoretical perspectives of persuasion. Note that these theories are not only for real estate agents, marketers, or salespeople; they are for everyone. But to get things in context, we’ll assume the perspective of the real estate industry.
Confidence vs. Uncertainty
Expressing with certainty a particular attitude hardens that attitude. Expressing with uncertainty a particular attitude softens that attitude. To persuade, both parties involved in the persuasion relationship should have an aligned attitude. As a vendor, your strength of certainty is the standard of presentation: your show of confidence.
This theory is aligned to the consistency principle. If you believe that a property is suitable to your prospective buyers because it meets their wants and needs, you have to be certain and behave just like it. If you show signs of uncertainty, you’ll meet resistance.
Relevant vs. Limited Information
This simply proposes that if we give someone something to our prospective buyers, they are obliged to return the favour. Aligned to the reciprocity principle, prospective buyers are more prone to get persuaded when one critical thing is present: relevant information. In line with our example above, your belief that a property is suitable to prospective buyers must be backed by valuable information and staging that persuades them. Reciprocation comes in when they respond positively by giving indications of potential suitability to property.
Supply vs. Demand
This theory proposes that people want what is in short supply. The desirability factor people experience increases when they realise the opportunity that they might miss when they pass it on.
Aligned to the Scarcity principle, this theory focuses on the availability of supply versus the existing demand, and vice versa. When housing supply is short, people tend to feel that the property they find most attractive is what they’re looking for. They’ll want to check it out because they want it. Coupled with the Amplification Hypothesis, their belief that the property should be theirs is reinforced, thereby increasing the chance of persuading them to buy.
Our job as property makeover specialists is about creating competition. This adds to the scarcity. As more people get interested, the fear of missing out is there. Competition means that more potential purchasers at an inspection are enjoying what they are seeing.
Proven vs. Implied Performance
This theory proposes that people are persuaded based on their perceived relationship to the influencer, other people, and the society.
With the same proposition as the social proof principle, this theory places the importance of social relationships as a persuading factor. If a property gets listed, people will look at the agency and the agent information. If they find that people like previous homebuyers, industry influencers, or other brands report a positive experience, they are more likely to consider getting in touch with the agent.
Agents who constantly show well presented properties and are great at what they do achieve great results. Whilst potential vendors are reviewing this social proof, they will be looking at these well presented properties and gain even more confidence in the results and what they are seeing.