REALTOR® Magazine Online: Understanding Motivation

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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.

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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