4. Leverage the herd mentality
Two restaurants sit on opposite sides of the street. The cuisine and atmosphere of both are of equal quality and the menus are comparably priced. But when potential diners see a line of people waiting at one of the restaurants and not at the other, they assume the busy one is superior, and then they follow the crowd. It is a phenomenon known by many names - pack mentality, peer pressure, following the herd – and it plays an absolutely critical role in selling real estate.
Here is how you can make the herd mentality work for you:
To study people who are experts at drumming up urgency and creating momentum go to a timeshare presentation because they’re incredibly skilled at this. The idea is to bring together a group of qualified prospects interested in the same property, thus creating a sense of urgency.
When buyers compete for real estate, almost like in an auction setting, the fear of loss will often compel him or her to buy much faster than if no one was around and they and all the time in the world. However you do it, creating urgency creates a competitive environment that helps property sell.
If you’re considering having a launch party for your project think about hosting in a smaller venue than you might actually need, including having fewer parking spots available. That way potential buyers will feel the squeeze, both psychologically and physically, when surrounded by a group of people all interested in the same thing.
And don’t worry if some people only show up for the free food or festive ambiance. They still represent bodies in the room and the perception that more people are interested in your project works to your advantage.
Remember the perception of scarcity and the fear of loss are powerful motivators in human psychology – use them to your advantage and you will be amazed how a sense of urgency can help you sell in any market conditions.