Consensus is hard wired into the way people make decisions. It goes all the way back to primitive man. It is much safer to be part of a group. It is much safer to do what the group is doing. If you follow the group and do what they all do you are much more likely to survive. Not only you but your entire family.
If everyone is saying “now is a bad time to sell a house” or “now is a bad time to buy a house,” psychologically most people are going to follow the herd and do what everyone else is doing. Doesn’t matter if it is right or wrong, a good thing to do or not, it just depends on what the “herd” is doing.
Every time people see or hear, on the news, that now is a bad time to buy real estate they will naturally want to follow the group consensus and not buy real estate right now.
So what do you do, wait around until the group consensus decides to start buying and selling again?
Absolutely not. You just need to understand and use other psychological principles to get people to take action and not follow the group in this situation.
How do you convince people to take action opposite of what the group or most people are doing?
One way is to use another psychological principle called authority. People follow and do what authorities or experts tell them to do. This principle goes back to our basic need to survive again; doing what the expert in the tribe says helps me to survive and be safer.
How do you use the principle of authority?
Find experts and authority figures that you can quote. Find authority figures that are telling people “now is a good time to buy”. For example, a few months back I was listening to Clark Howard on the radio and he was telling people it was a smart financial decision to buy real estate right now.
So this month in my newsletter or when talking to clients I will say “Clark Howard says buying real estate right now is a good thing to do”. And Warren Buffett , also says buying real estate right now is a good thing, he said “If I had a way of buying a couple hundred thousand single-family homes I would load up on them.” . The “herd” is usually wrong and makes big mistakes financially by buying when everyone else does and selling when everyone else does, so you should not listen to what the “herd” is doing right now, you should listen to the experts and buy.
The more experts you can find and use the more powerful the principle of authority becomes.
I guarantee you very few real estate agents understand these psychological principles. Very few agents understand how to use them to motivate people and get them to take action like buying right now. When you learn these psychological principles you will be much more effective than other agents and will make lots more money.
This is just one psychological principle you can use right now to motivate people to buy despite what the news or media is telling them.
There are many more psychological principles so look for more of my articles in the future.