The home buying paradox of choice

By
Real Estate Agent

According to a study conducted by two Social Psychology professors at Columbia University, a jam shopper is ten times as likely to buy a jar of jam when they are presented with six choices of jam flavors instead of twenty four. In other words, the jam shopper is ten times as likely to be successful and satisfied in their mission to secure jam when they are choosing from a selection that is 75% smaller. 

Yet, if you ask that same jam shopper if they would rather choose from six choices or twenty four, they will always indicate a preference towards the greater selection. 

People get overwhelmed when provided too many choices and as a result they are more successful at making a decision when the choices are limited. Yet paradoxically people will always prefer to choose from as many choices as possible.

In the real estate industry this means less choice can yield a greater success rate for your home buying clients, resulting in a happier client and a richer agent. 

Of course the reality is that all consumers have access to essentially all of the home listings. So your job at this point isn't to attempt to restrict access to the online directories, but to curate a list of homes perfectly matched to your clients, similarly to how a Sommelier pairs and suggests the best wine to complement a meal at a fine restaurant.

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Rainmaker
158,310
MaryBeth Mills Muldowney
Massachusetts Broker Owner
TradeWinds Realty Group LLC
Usually our first outing is the Buyer's list of interesting homes, from there I can use their reactions to discern which homes may interest them and explain why we are not seeing some others on their list, yes life is overwhelming!
January 11, 2011 11:40 PM
Rainer
97,662
Lisa S. Mullins

You are so right! If yo know your clients needs  and you explain the process it simplifies the process!   I try to only show my Buyers amybe 2 homes at a time - and wait a week  between.  Everyone is so busy these  days!

January 12, 2011 10:28 AM
Rainmaker
64,294
Crystal Pina
Remax Professional Associates
774.289.5521

I always say, "a confused mind always says No". I don't know where I first heard it, but I always try to remember it.

January 13, 2011 02:56 PM
Rainer
129,727
James Harner
James Harner Group - Philadelphia PA Real Estate
Considering Selling Your Home? Call 610-310-7646 first

this is an absolute truth. we are matchmakers. we must know our client and and inventory in order to create a successful opportunity for matchmaking.

January 15, 2011 02:02 PM
Rainmaker
723,974
Gabrielle Kamahele Rhind
Broker/Owner
KGC Properties LLC, Tucson Property Management & Real Estate

GOOD MORNING JON!  Narrowing down choices ... I practice this daily with my daughter - makes it easy for her and much easier for me!  It's a good practice to apply in the real world especially with buyers and helping others make decisions! -- G

January 20, 2011 06:33 AM
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Jon Washburn

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