Is a ‘fear of missing out’ influencing your property decisions?
Right now, it seems like you can’t catch the news or go to a dinner party without hearing about the current property market. From low interest rates to strong auction clearance levels, what’s going on in the real estate landscape is dominating conversations.
So, how can you make sure you keep a level head and not get caught up in the drama of the marketplace? To help uncover some of the key motivations and influences impacting homebuyers’ decisions, we commissioned a survey which looked at some of the factors impacting the purchasing process. By surveying 1,000 homebuyers and property investors, we uncovered that a ‘fear of missing out’ on the perfect property is influencing how quickly we purchase property.
So, how are homebuyers influenced by the fear of missing out ‘psyche’?
The research revealed the majority of home buyers (58 per cent) admitted to rushing in and negotiating a price on a property before they have done their due diligence.
Whether it’s family pressures, emotions or a good financial deal, our research also highlighted some of the key reasons Aussies are rushing in and buying property before they are ready.
- 65% told us they believe property prices are being steered by this fear of missing out.
- 89% of subsequent home buyers cite additional family pressures (a new baby, pregnancy, kids starting school etc.) as the reason that drives them to buy quickly.
- Investors also admitted to negotiating a price before doing their due diligence (55%) – though with differing motivations to subsequent home buyers. The research revealed they are driven to buy more quickly because they believe they have found a good financial deal and don’t want to miss out (30%).
A competitive marketplace can increase the ‘fear of missing out’ on the perfect property. However, if you are looking to purchase a property this spring, it is important that you do not rush the process. All homebuyers should make sure they are going through the appropriate steps, before they begin negotiations on a property purchase. This includes things like doing your market research and due diligence, setting yourself a clear budget, and getting your finances in order by getting conditional pre-approval on your home loan.
For more information about CommBank’s home loan options go to www.commbank.com.au/flexible
Tell us, what are your best tips when looking to purchase a property? The CommBank Research was conducted by Lonergan Research, among 1,098 Australian aged 18 and over who have bought a property in the last five years or are looking to buy within the next two years. Fieldwork commenced on Friday, August 16 and was completed on Monday, August 19, 2013. After interviewing, data was weighted to the latest population estimates sourced from the Australian Bureau of Statistics.