Why Is The Fear Of Losing A Greater Motivator Than The Possibility Of Winning?

Why is the fear of loss a greater motivator than the possibility of winning?

Yes, it's really true; far more people will act out of fear that they are "missing out" on something vs. the potential upside of gaining something.

 Think about that hot pair of shoes with the purse that compliments them perfectly you saw at your favorite department store. The items were staring at you from a 50% sale rack across the crowded room. That dress had your name written all over it, it's your exact size, and it's the last one.

 

 

 

 

 

 

You tried the shoes on and they fit perfectly. Yet for some reason, you just wouldn't make the commitment to buy them, and you gave the box back to the salesperson. As you walk away another shopper who was scoping things out from distance, approaches the clerk and trys "your" shoes on.

All of a sudden you now want to purchase the shoes and the purse. You plead with the salesperson to find you an identical pair of shoes in your size...even if you have to drive to a different mall 15 miles away to pick them up...you want THOSE shoes NOW! Or should I say... NOW you want THOSE shoes!

WANT MORE?

Let's think about from a real estate perspective. How many times have you encountered any of the following scenarios:                                                                                                                      

a.  How about the buyer whom you encouraged to write an offer or else they were going to miss out on a house they really love with the water view they would die for, but they didn't believe you because they think we're in a "buyers market?" They hesitated and now that GREAT HOUSE is in attorney review or under contract with a different buy, and they now are motivated to write a contract on everything toilet and a kitchen sink.

 

 

 

 b.  What about the seller whom you beg and plead with to agree to a price reduction, because your Marlboro, NJ listing is now 120 days on the market and it's the most expensive one out of all the comps and the competition is now going under contract, but they still refuse to take heed to your professional advice? Yet, the moment you tell them you spoke to an agent whose client was going to write a contract on their home, but decided not to, because their buyers felt there wouldn't be enough negotiating room, your seller panics and demands an immediate price reduction.  

 

 

 

 

 

 

 

c.  How about fellow Realtors whom you've encouraged to embrace utilizing the web or suggested they purchase a Blackberry, iPhone or other gadget or better you've impressed the importance of joining ActiveRain? Some (not all) but some, literally cringe at the thought of it, because they just feel they're too seasoned and don't need to do it. The thought of computers and technology may seem overwhelming to some of them as well. Yet, the moment they hear an agent actually made a sale from an Internet lead or better yet a sale courtesy of ActiveRain, things don't seem so scary or out of reach any longer. 

THE COMMON THREAD:

Notice the pattern in any of the scenarios above? 

This proves my point....People are often motivated to take action when they feel like they are "losing out" on something. I suppose it's just human nature, and we've all been guilty of it at some point in life.

The truth is that the shoes at the mall looks no different whether I buy them or the next shopper purchases them. The house looks no different either, it's still the same house. The deal you close from the ActiveRain referral is still the same deal in essence on paper.

HERE'S WHERE THE DIFFERENCE COMES IN:

When we don't learn to "go with our gutt, we'll always be chasing things we really love, desire and want the most vs. deliberately attracting prosperity & happiness into our lives.

  1. We'll be following the latest fashion trends vs. setting the fashion trends.
  2. Buyers will be chasing the real estate market and paying top dollar vs. taking advantage of a good deal when their Realtor presents it.
  3. Sellers will lose out on securing premium buyers, because they didn't take the advice of the real estate agent they've retained to market and sell their home.

POSSIBLE SOLUTION? 

It's time to GET OFF THE FENCE!

  

9 times out of 10 our instincts are probably right! Yes, that was a HOT pair of shoes! That was the PERFECT house to buy! That was the IDEAL buyer to sell your home to! That lead you got an email from because they read your ActiveRain blog was a REAL and BONAFIED prospect!

Old habits are hard to break...no doubt about it. However, any behavior that has been learned, can be unlearned. It's all about reconditioning our minds. If each day we push ourselves a little more and learn to better "read the tea leaves" and trust our instincts we will discover that the key to our success and happiness often lies within US. 

The opportunities to create new business in real estate exists, despite market conditions. So is it possible that we can become motivated by the new listings we could gain or the new buyers we could sell to, instead of focusing on things we really can't control, such as the economy?

In 2009, let's make part of our business plan be to allow the promise of WINNING to be a greater MOTIVATOR than the FEAR of LOSING!

Stay motivated,

Amber