Selling a home isn’t the transaction it used to be! Statistics highlight that 37% of Gen Z outpace millennials acquiring homeownership dreams in 2024. Dissecting Gen Z’s characteristics, they are technologically equipped buyers and conservative spenders who are financially wired and committed to making wise investments during a recession. In the case of this specific demographic, more than “outdated” home-selling techniques will be needed. So, what’s the best way to sell a home to Gen Z?
We recommend using the art of psychology to influence their home-buying decisions. This article explores the psychology of selling a home to Gen Z with four efficient home-selling tips handed down by top-certified realtors from the reliable real estate agents directory!
Table of Contents
- Psychology Behind Selling a Home and Its Impact on GenZ
- Four Enduring Home Selling Tips
- Can Sellers Back Out of Selling a House?
Psychology Behind Selling a Home and Its Impact on GenZ
Buying a home is a weighty decision. A report by BMO Financial Group titled Psychology of House Hunting concluded that 80% of potential buyers know if a home is right for them merely a few seconds after crossing the threshold. Researchers say this happens because our minds process more information in less time than we might believe. This is especially true for Gen Z, whose self-directed and resourceful nature allows them to view the deliberation process as a “waste of time.”
Let’s Break It Down…
A home buyer and seller are magnetically drawn to achieving a successful common goal when there’s a conditional partnership. For example, setting a fair market value will entice your potential buyer to see the actual value of the deal in hand. In this way, buying a home will always be a psychological process that inhibits rational reasoning. Hence, realtors should say or highlight the things about the house that Gen Z wants to hear, such as the following:
- Portray the emotional benefits of a home. E.g., highlighting stability and a sense of belongingness, the potential for making memories, and providing a personal retreat.
- Emphasize the home’s good value regarding location, amenities, and sustainability because Gen Z is practical yet value-oriented.
- Conduct virtual tours for accessible home-buying experiences.
- To cater to Gen Z’s interest in environmental issues, boast eco-friendly features or sustainable living options.
- Highlight the flexibility of the space that can accommodate their hobbies and activities.
Generally, these are the things that Gen Z wants to hear while a house showing. They may buy a specific home because its features align with their psychological needs and expectations. As a result, they are inclined to accept a price for a home.
So, a way to show a property’s worth to Gen Z is by predicting how they will pre-determine the home’s value. With this preparation and knowledge behind the psychology of a particular buyer, the direct impact for the seller and buyer is a sure “win-win” situation.
Four Enduring Home Selling Tips
Apart from the tips that cater to a buyer’s psychological needs and expectations, specific lasting and efficient home-selling tricks apply to every home buyer, including Gen Z. Here are those home-selling psychological suggestions:
1. Cater to Sight and Smell
Buyers show two psychological tendencies when they walk in: anchoring and confirmation bias. Anchoring is the human tendency to conclude or decide based on information gained early on in the decision-making process. Indeed, buyers make these assumptions based on what they see inside the house and their initial reaction after walking through the rest of the home.
The next is confirmation bias, meaning buyers will look for information supporting their beliefs. If a buyer finds any issues in the house, be it small ones like a burnt-out bulb, it supposedly makes them think of the negative aspects of the house. Both tendencies talk about how catering to a buyer’s sight is essential.
How do you cater to your buyer’s sight?
- Start by enhancing the curb appeal of the house. Mow the grass, trim the bush, place roll-off dumpster rental, fix the porch lights, and clear any clutter from the view.
- Have your buyers enter through the front door instead of a garage or side door to give them a “WOW” impression.
- Before showing potential buyers the house, check it with fresh eyes and spot the wear and tear. Some inexpensive DIY fixes prevent potential buyers from creating a mental list of ‘price-reducers’ or ‘walking out of the deal.’
It’s not just about what buyers see! What your buyers smell actually matters. A study by Eric Spangenberg (Washington State University) found that shoppers spent 32% more in stores with simple orange scents than in stores with multifaceted, complex smells like a blend of orange, basil, and green tea. The reason behind this is that the complex scents actually distract people from figuring out what they want. So, always remember! Your buyer isn’t in your house to process smells. They are there to figure out if they wish to live in that place.
How do you cater to your buyer’s smell?
- Splash a scent down the sink because everyone loves the smell of clean air.
- Go for a fresh and simple scent, like lemon, basil, or pine.
2. Use Price Psychology: Round Numbers Don’t Work!
Price is always the deciding factor, as people always have a budget in mind. It’s always a great idea to ask about the home buyer’s budget and show them their ‘budget house’ as a realtor. Still, it’s even better to up your game and sell that great house that makes people willing to afford it despite their budget. Why don’t you use price psychology, called reciprocation tendency, or ‘the foot in the door’ phenomenon?
As per the reciprocation tendency, people are likelier to give you a ballpark estimate if you ask for a ridiculous amount first. For example, try to show property prices in your neighborhood. For instance, house one no. 1 is for sale at $620,000, and house no. 2 is at $725,000. Then, set the mid-price for your home. Per this logic, anything below the price seems reasonable to the buyer.
But how should the house be priced? A study by Columbia Business School discovered that owners who ask for specific amounts are more successful than those who ask for lump sums or rounded prices. For example, you should go with $725,000 instead of $700,000.
Here’s how to cater to your buyer’s price psychology:
- Price the house right and make it reasonable. A seller’s agent can help you with that.
- Avoid the lump-sum trap and make the price specific.
3. Try the Art of Home Staging
A Real Estate Staging Association study highlighted that 63 percent of unstaged homes were on the market for an average of 143 days. However, professionally staged homes sold within an average of 40 days. Another National Association of REALTORS (NAR) study underlined a similar result. 77% of buyers loved the staged property, which helped them visualize it as a future home.
Home staging (rearranging furniture and boosting interior decor) prepares your home for potential buyers. People are into aesthetic homes, so staging is always a great idea because it helps buyers envision themselves living in that space. Give it a thought! Everybody loves a move-in-ready home!
Tricks to stage your home
- Hire professional stagers with interior decorating and decor experience that can work in your favor.
- Pay attention to the presentation.
- Or, try virtual staging at a much lower price.
4. Time Your Home Selling Right
It’s imperative to benefit from data like mortgage rates and comparable home values. If the real estate market is out of balance (as in the buyer’s market), you might set your home price below its actual value. Plus, you’ll be forced to negotiate the selling price more frequently. You’ll only regret listing it in the first place! It’s the ultimate seller’s secret never to show urgency to sell.
Read the purchasing power of average home buyers and try to time your sale right. If, as a seller, you are afraid to ask for the actual price at which you value your home, there may be better times for you to sell the property.
Can Sellers Back Out of Selling a House?
Yes, a seller can back out of selling a house only under certain circumstances. Still, it’s an odd situation. Once you’ve signed a (binding) real estate contract, a buyer can sue you and cause financial and legal troubles. After negotiations with the buyer, you can incur home inspection costs, attorney expenses, increased mortgage rates, and more!
Suppose you can’t decide (or don’t know) whether you can carry out the transaction and give the keys to the buyer on closing day. The best way to mitigate breach of contract litigation cases as a seller is to include a notice period clause, where both parties can legally back out of a contract.
Author’s Conclusion
Remember, the key to successful home selling lies in four fundamental tricks: Appeal to sight and smell, strategically price your home, and time the sale right! These are not just empty buzzwords. They’re proven methods to help you meet potential buyers’ expectations, leading to quicker sales and higher satisfaction rates. So, if you’re ready to sell your home, consider implementing these tricks for a successful outcome. They could be the key to a smooth and successful home-selling journey.
Are you excited to sell a house with these tricks? If you need help, you can always hire a real estate agent!
