The Buyers’ Decision Quadrant
I’m always finding when people are buying real estate whether they are buying it for themselves to live in or they are buying it for an investment property, they are faced with some form of compromise. We’ve thought about this a lot and usually it is one of four things. So we’ve come up with what’s called the Buyers’ Decision Quadrant. It’s really for you to find out in advance which area you are most likely to compromise on when the rubber meets the road. The four parts of the quadrant are very very simple. It’s either Price, Location, Land Proportion or Quality of the Dwelling. Let’s have a look at that.
Now, my show is called Location Location Location Australia and the second one being location is usually, in my opinion, people would choose location before they choose house. So you can start seeing a bit of a pattern there. They are not really willing to compromise on the price and in terms of location, most people are really unwilling to compromise on location. So kind of leaves us to one or two things left, proportion of the land/land size or the quality of the dwellings.
If they want a house, it means they might have to get a renovator or if they want something that is shiny or brand new, really easy to live in and nothing needs to be done, they might have to compromise on the proportion of the land. Meaning, instead of buying a house, they might have to buy a townhouse or if they actually were looking for a townhouse but realised that their budget couldn’t allow them to do that and they are not prepared to budge on the location or the price or having it shiny, it might just mean that they need to go and buy an apartment. And so, irrespective of whether you are buying for yourself to live in or whether or not you are buying it for an investment property, you are going to be faced with the Buyers’ Decision Quadrant. The best thing that you can do in advance if you are buying a home on your own or if you are buying it with someone else, is to have a conversation around these four things because if you are forewarned and forearmed on what you most likely to compromise, it means when you are in the field and looking at property and the agent is talking to you on certain tactics and you got to be quick and you got to move fast, at least you have already thought in advance which areas you are most likely to compromise on. Cause if you see something that represents great value and stacks up most of your wish list, it means you can move very very quickly. So the Buyers’s Decision Quadrant is something that you need to become very familiar with: Price, Location, Proportion of Land and Quality of Dwelling.