 |  | | Understanding Motivation
Most human behavior is goal-oriented. But in addition to their stated goals — buying or selling a house — customers are motivated by a range of physical and psychological needs. Salespeople who understand these needs can help their clients through the decision-making process before the negotiation gets underway.
In the 1940s, psychologist Abraham Maslow used a pyramid to illustrate a hierarchy of human needs. Basic physiological needs — such as food, shelter, and security — are at the bottom.
On the top of the pyramid is self-actualization, which Maslow defined as the ability to reach your potential. According to Maslow, motivation moves up the pyramid; you must satisfy the more basic needs near the bottom of the pyramid before you can work to satisfy the needs at the top.
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Demand for Specific Housing
Characteristics
at Various Levels of Human Motivation
|
Motivation
Level |
Physical |
Social |
Economic |
| Physiological
|
Sound
structure, basic facilities |
Convenient
location to employment |
Lowest
possible costs |
| Safety/Security
|
Security,
Adequate privacy for family |
Freedom
from environmental hazards and market uncertainty |
Ability
to exercise control environment |
| Affiliation |
Adequate
privacy for individual |
Socially
compatible neighbors |
Acceptance
in community of homeowners |
| Esteem |
Esteem
Attractive house design and landscaping |
Prestige
address Pride
of
ownership
in appreciating asset
|
Pride
in owning an asset with a
|
| Self-actualization |
Facilities for avocational pursuits |
Proximity
to cultural and recreational interests |
Expression
of specific values |
Adapted
from a chart in "Buyer Motivation = Human Need,"
Jack Harris and Sue Young, Real Estate Today, June 1983.
Customers motivated by needs for shelter and security might include:
- Long-time renters who want to move up to homeownership.
- Older owners who have lived in their home for long periods.
- Sellers who are reluctant to leave a home where they have spent many years.
- Immigrants seeking to establish a new life for themselves.
- People who have experienced poverty or had significant fluctuations in their finances.
Customers motivated by needs for affiliation and esteem might include:
- Move-up buyers who want a larger home as a representation of their success.
- Buyers who want to live in an area near family and friends.
- Sellers who no longer need to live near schools and activities for their children.
- Buyers with strong ties to schools or other community-based organizations.
Customers motivated by needs for self-actualization might include:
- Vacation or second-home buyers.
- Retirees, who no longer need to live near their workplaces.
- Luxury homebuyers.
Every buyer is motivated by every need described by Maslow to a greater or lesser degree. So the retiree may want self-actualization, but also be concerned about security and affiliation. The goal is to determine which motivations are dominant.
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