The Psychology of Real Estate

The more I get to know the world of real estate, the more I have noticed that having an understanding of psychology is just as important as sales. In fact, one’s psychology is a driving force behind all sales!

There are many personality tests out there that will not only tell you what type of person you are, but more importantly will help you detect what type of client you’re dealing with before the negotiations even start.

I personally like the DISC test, which labels people as a “D” “I” “S” or “C.” Although a person can’t be lumped into one single category, it does highlight natural tendencies and comforts.

For example, most real estate salespeople have a high “D” which is direct, results-oriented, firm, strong-willed and dominant…sound familiar?!?!

Here’s an example of using that psychology to your advantage: when you do a CMA and have a take-charge seller who immediately takes control, shows you the house and wants to know the bottom line, you have found a “D.” Don’t try to wow them with current market stats, a 5-page bio of yourself and the last 50 houses you have sold – a “D” doesn’t care!  They want to know how much you will sell their house for and how long it will take.  They want results! It can be intimidating, but the trade-off is…they will usually sign on the spot!

“I” is the next most common for real estate sales people.  An “I” is very outgoing, with lots of enthusiasm, positivity and optimism.  An “I” wants to be your friend before they will let you sell their home and they might just talk for hours.  If you let them, it will pay off.

“S” is the personality who is even-tempered, patient, tactful and accommodating.  Ultimately, they like steadiness.  An “S” might be indecisive but if you are patient, and make them feel like the outcome is a calm collaboration between REALTOR® and seller, you will have success.

“C” is what most good accountants are – stable, accurate, challenging and conscientious.  If you determine you’re talking to a “C” and are about to do a CMA, it might be a good idea to drop off a pre-CMA package to allow them time to go over the stats in advance.  Make sure you are well-read up on current market trends, and you will win their trust.  If you take a “D” approach, you might turn up empty handed.

The faster you can identify personality types, the sooner you can build a trusting, meaningful relationship with your client/customer.

The real estate psychology courses I have taken have been just as valuable as any sales course and I would encourage you all to learn more about the Psychology of Real Estate!

– Sarah Dunlop-Kiraly, YPN Committee Member and OREA YPN Guest Blogger