Searching for a San Francisco luxury home is a big decision, and the way your mind works with regard to preferences, like if you preferred one home over another, is an interesting thing that most people don’t give a second thought to. Perhaps you visited the same house twice, and preferred it more on a day the sun was shining brightly versus a day when it was foggy and cold. The psychological implications of purchasing luxury real estate are alive and documented, so let’s take a quick trip back to Psych 101 to see how it all works.
Lifestyle: One of the reasons why real estate purchases are so tied to psychology is because a home is a direct representation of your life.
Cost: Of course, the cost associated with something like a San Francisco luxury home will have an impact on your psyche. Depending on how the value changes, this could have a very real implication for the life you want to live.
Superficiality: There is proven research that says the more attractive the real estate agent is, the more a buyer is willing to pay. It may seem silly, but this obsession with superficial things also plays into home buying. For example, if you walk into a San Francisco luxury home and hate the color the room is painted, you’re less likely to buy that house, despite the fact that you can remedy the issue with a cheap can of paint.
Perceived Value: The human mind is a powerful thing, and it’s amazing how attached we get to the perceived value of a home. You may think your home is worth X, but given the economy, it might actually be worth Y. Still, humans aren’t programmed to recalibrate their expectations so easily, and will often hold onto some perceived value. It’s called “loss aversion,” a mental aberration where humans are much more sensitive to losses than they are equivalent gains.
Thinking about purchasing a San Francisco luxury home? I would love to meet you! I’m a local real estate broker who specializes in San Francisco luxury real estate. Please contact me if you would like to discuss your individual needs. I’d love to help you find the home of your dreams!