Too Many Choices Hurt Buyers Decision Making

Too many choices in the housing market makes deciding to purchase even tougher for buyers today.  For instance, there are the obvious questions, "Is the market at at the bottom?"  "Will the economy get worse?"  These are questions on everyone's mind these days.  As to the market bottom question, however, I'll only say that the only way you can determine when the market has hit bottom is only after it's already on the way back up.

These questions are not the decision making problems I'm talking about, however.  What I'm talking about is the fact that with increased inventories in practically every market category, it becomes increasingly difficult for many buyers to make a choice that leads to ultimate personal satisfaction!  Too many choices leads to paralysis.  The fear of making a bad choice forces us to make no decision at all, or at the very least delay, delay, delay the decision making as pointed out by Seth Godin in his recent blog post. 

What's really going on here in my opinion, is what Barry Schwartz writes about in his book "The Paradox of Choice".  Too many choices can actually have the effect of diminishing our ultimate satisfaction!  We become too worried about making a bad decision.  This may seem false on the surface, but think about it.  Why do we channel surf so much when we watch TV?  We're afraid of what we're missing on another channel!  When we only had three channels, we knew what we wanted to watch and a remote control was far less necessary, right?  (For those of you born after the advent of cable TV, you have to trust us older folks.)

So, what's the solution?  I'll paraphrase Barry Schwartz, "The secret to happiness is low expectations!  In this world where perfection is the expectation, it is increasingly difficult to have experiences that are a 'pleasant surprise'."  Or, more to Seth's point, make a solid decision, and move on with your life!  It's far healthier in my opinion to make an informed decision and accept the results.  This isn't about diminishing the information process and accepting shortcuts, rather, it's about making good decisions, and stop trying to make perfect ones.  It's a relief, isn't it?  The pursuit of perfection is exhausting!  These are the best of times for home buyers.  Take advantage of it.

Comments

[Nicole Vaught]

Powerful summary! We are all burdened by human nature and we let so many great opportunities pass us do to fear! Everything we do in our lives have a sizable risk attached to it; getting in a car, walking down stairs, investing in the stock market, taking a new job…it is a part of who we are. People are so often afraid of what “might be” that they cannot see what is right in front of them. As long as you make informed decisions there should be no regret! You will never enjoy what life has to offer if you allow fear to consume you! Real Estate in today’s market is a remarkable investment; don’t let yourself miss the opportunity!

[Julie Crimmins]

With as many choices as buyers have it is imperative that they stay focussed on what their individual goals are and staying true to those goals. Narrowing the search by eliminating those properties that do not meet with their needs is the best place to start. Until we have the ability to look into a crystal ball and know where the market is heading the only sound decisions we can make are those that work best for our own lives.

[Rick Taylor]

Great point. Any decision is better than no decision at all! It's like trying to find the best deal on a computer. No matter what you buy today there will always be something better tomorrow. Rather than waiting for the perfect deal, get in the game, buy something you like and start enjoying it, rather than standing on the sidelines waiting for the next best thing to come along.