Do you know mood and weather might affect your decision of property purchase? An interesting article published by SMH tells the story.
The story started with the well-known wisdom that you should “never shop on an empty stomach”. A few years back economists Daniel Read and Barbara van Leeuwen proved the point by asking British office workers to choose between receiving an apple or a Mars bar. But they weren’t going to get the gift for a week, so they had to guess what they would want in the future, in the same way as we have to when shopping. Half were asked just after they had eaten, half towards the end of the day when they would be hungry. The hungry half were far more likely to say they would want a Mars bar in a week. The half that had eaten were more likely to want an apple.
Another example quoted in the story is about buying cars. Americans buy convertibles. The US National Bureau of Economic Research finds they buy more of them on days that are exceptionally hot. It found people bought more convertibles in spring and summer than in winter and autumn. But what was surprising was what happened on days when the weather was exceptionally hot. On days that were 9 degrees celsius hotter than normal for the month sales of convertibles jumped 9 per cent, even in winter. Think about that: a car lasts for a decade, but a decision about the type of car we buy can depend on the weather on the day we go shopping.
The NBER same study published in July finds that homes with pools sell for $1400 more in summer than they do in winter. Yes it is the weather at the time of purchase – not at the time of moving in – that makes buyers more likely to want pools.
The same study found that the convertibles bought on the hot days far more likely to be returned.
The question is if you pay a premium to get a house with swimming pool can you return it to the seller later when the weather is not hot any more? You cannot!
Do you think you will be more likely to pay more than what you plan to pay to get a property with a nice, bright, and renovated kitchen if you go to the auction on an empty stomach? I think the answer is yes.
Here is the link to the story: