The Psychology of Property Buyers In A Low Supply Market

In today’s market of rising property prices, the psychology of existing property buyers is actually changing right before my eyes.

Instead of being someone who is neutral and able to follow a set budget that is sensible, a lot of these buyers are transforming into people who are being driven by a strong urgency to get a home.

What I can sense is that buyers are now just snatching properties anyhow without putting a proper decision-making process in place.

An Urgency That Is Driven By Lack of Supply

This urgency that I am seeing is actually being driven by fear, specifically the fear of loss.

I seen cases where sellers have sold their homes at record prices suddenly become desperate because they have not secured their next home yet.

The fear of being homeless is palpable and that is also the reason why the rental market is also booming.

Rental prices jumping by 40% to 100% is becoming old news to me.

But this is the reality of the property market now as people realize that 3 things are happening all at once:

• prices have shifted to a level that might be out of their reach
• supply is really limited
• buyers are now realizing their requirements have to be compromised

Imagine those property buyers who had the budget to buy a 5-room HDB flat in Woodlands back in 2019 are now able to purchase only a 3-room HDB flat in the same area now in 2022.

That is how much prices have shifted.

Imagine Wanting Something Badly But Being Unable To Have It

Let’s say you been window-shopping for awhile for an item you want quite badly.

But you know it goes on sale regularly – all those 11/11 sale or 12/12 online sale promotions.

So you hold yourself back from buying it.

The day of the sale comes.

But because stocks are limited, you were not fast enough to grab this item you have been coveting for awhile.

You failed to get the item after months of daydreaming that you will own it one day.

How would you feel?

I can tell you that you will be highly disappointed and perhaps even upset.

And when you have been building up in your mind to buy it for a long time, it actually affects your emotions. 

You feel that holding back has been a mistake…

And you decide to just purchase it at the next available opportunity.

This is what is happening right now in the property market.

I am seeing buyers suddenly letting go of their “price boundaries” and going after units and homes that they should not be buying.

Now if I am representing a seller, of course this is very good for me and my client.

“Aiyah, $20k more only. Just go and buy.” – this is some of the reasoning that is going on in the heads of buyers.

But when I see buyers who are unrepresented by an agent, with no one guiding them whether they are on the right path or not – then that becomes painful.

Believe me, I know housing is an emotional thing.

But it can also be a very painful thing.

Making decisions on impulse feelings can hurt you a lot in the future especially with regards to your property.

Learn How To Protect Yourself In Your Buying Journey

The truth is that we are all emotional creatures that are guided by our instincts and desires.

And the next powerful instinct that drives us besides oxygen and food?

It is our need for shelter.

And that is why the property buying journey can be very hazardous in this current property market.

Believe me, as an agent who has represented plenty of sellers – I have helped these homeowners achieve record high prices for their properties in the past few years.

I know how to press the right buttons on a buyer to make them accept my clients’ asking prices.

You might be thinking that I am taking advantage of buyers in this market.

But the simple fact is that it is my duty as these homeowners have engaged me and put their trust in me to secure the best possible price for their homes.

Are You Making A Property Purchase Decision Without Proper Support & Advice?

In case you are wondering, I do help and represent property buyers too.

For property buyers who engage me, my main duty is to help you make sure your property purchase is a happy decision for years to come.

Right now, my biggest concern is that a lot of buyers are purchasing units they have no business in buying.

Units with weird layouts that are usually very hard to sell in a normal market are flying off the shelves like hot cakes.

When I see buyers purchasing such units, I know it will become a big issue down the road.

When buyers come and check out the unit in the future, they will be very hesitant to buy and take the unit off your hands.

Imagine trying to sell a home with a weird layout that no one wants.

Not only that, you also bought it at a super high price.

Buying is really easy.

But being stuck there and not being able to sell in the future – that will be really torturous.

Why? Because you realize the only way to let go of it is by selling it at a big loss.

Let An Experienced Agent Guide You

In the whole of 2021, I met more than 150 families from various backgrounds and financial strengths.

As of 30 June 2022, I already have met more than 60 families.

As an agent representing sellers, I have closed 14 resale units in the first half of 2022.

I also have helped sellers to purchase their next property at relatively low prices compared to everyone else.

I am highly aware of what is going on in the market thanks to my high level of activity in both the buy and sell transactions.

I know how active property buyers are feeling.

I also know what sellers are looking out for. (It is not always about high prices.)

I am also aware the idea of saving on the 1% fee is attractive especially when you are looking to cut down costs in the current market right now.

But for something that is going to be the biggest purchase in your life, I really hope you don’t try to save money on the wrong things.

Let me help you do the proper market research that are guided on actual market data and not just based on your assumptions.

So you don’t fall into the trap of overpaying for a home that you can’t sell in the future.

If you are buying something today and are now rushing to make a decision…

Because you are thinking that nothing much is left and prices keep going up…

Do be a bit more mindful on what you are buying and how to sell it in future.

Have questions? I invite you to contact me via Whatsapp or the contact form for a no-obligation discussion.