When you buy or sell Los Angeles real estate, keep in mind that we all have a psyche. More importantly, you will have to interact with several other psyches in the process. The best way to get the most satisfaction out of this process is if you can have some understanding of what motivates people. Psychological theorists have long tried to identify and explain what motivates us. In these blogs, I hope to give you some of the more popular theories on the human psyche and how having this information may help you in having a good real estate experience.

According to one popular 19th century theorist who is considered to be the founder of what is now termed individual psychology, Alfred Adler said that we are all working out an inferiority complex of some kind. It’s human nature to drive for superiority and Adler believed there are four ways in which we humans strive to get what we want. There is the Ruling Type, the Getting Type, the Avoiding Type, and the Socially Useful Type. The most “healthy” is, of course, the Socially Useful Type and we should all work to satisfy our drive for success with this method of behavior.

Alfred Adler and Los Angeles Real Estate Listings

For more in depth information about Adler, you can click here.

So by now of course you’re wondering how does this pertain to real estate? If you can understand the way in which people go about getting what they want, it may be helpful in understanding how they will progress through the process of buying or selling a home. Let’s look at each type starting with the least “healthy” way in which people go about striving for their desires.

The Avoiding Type

These people avoid life’s problems and tend not to involve themselves or take on challenges. They tend to be stubborn, lazy and passive-aggressive. You will probably find few of this type actually willing to commit to buying or selling property – and thank goodness for that! According to Adler this is the worst orientation.

The Ruling Type

These are the aggressors, the dominating people who seem to have somewhat of a disregard for or little interest in others. I’m sure we all know a person like this. They are the buyer that makes unreasonable demands for repairs and will walk away from a deal “on principal” even if it’s over a nominal amount of money or effort that is being withheld from them. They feel entitled to their demand being satisfied and can often be the hardest to even get into escrow because their offers can be so low or fraught with demands they are insulting to a seller. A ruling type seller is the seller that may have trouble understanding the value of their home. They will insist that it’s the agent that isn’t marketing the property correctly. They will write counter offers that are full of demands for specific performances other than what is in a standard contract. These people are tough to work with, and if you are a ruling type, you’re probably not even reading this blog! The major desire of this type of person is to acquire power over others. So, if you are dealing with this type of buyer or seller, the best way to handle them is to understand that their problems or issues with a transaction have less to do with the actual negotiating point versus their need to win. A good agent can present options for this type of person in order for them to feel like they’ve won at least something.

The Getting Type

These are the type of people who are dependent and require considerable support from others whilst contributing little in return. They can also be quite manipulative. When a getting type is in a real estate transaction, their way of handling issues that come up are to cry poor, or broken or unable to perform and they will use negative emotions to manipulate the others involved in the transaction trying to get them to see how hard it would be for them to do what they are being asked to do. A good agent knows how to support a getting type’s need for explanation, accommodation and understanding of their issues.

The Socially Useful Type

These are the people that have both high social interest and high activity. They tend to look at situations in proper and realistic ways and believe they have control over their lives. These people are easy to work with and when you find yourself in a real estate transaction with this type of person, compromises will most often be found quickly and satisfactorily. Let’s hope that your next real estate transaction is full of these types of people!

So keep in mind, when you are buying or selling Los Angeles real estate, it is my hope that by imparting a little wisdom about some of the ways in which certain “types” of people deal with life’s situations, you can work to have a more satisfactory experience.

If you own Los Angeles real estate congratulations, you have achieved part of the American Dream. So, since I am still postulating Freud’s theories, let’s examine the concept of a dream. According to Freud, we work out our problems in our dreams. This is where the unconscious is brought into our consciousness for evaluation without direct confrontation (even though I know when I’m asleep I feel totally unconscious – but I’m certain that’s just because I’m a working mother of two). Freud was one of the first to put forth that the way to a better quality of life was to gain a better understanding of ourselves through self-examination. Let’s examine the American Dream.

Dream, according to Webster is:

1.             A series of thoughts, images, or emotions occurring during sleep.
                       Example: “I had a dream I bought a house.”

2.             An experience of waking life having the quality of a dream, creation of the imagination.
                      Example: “Just picture your dream home, and describe it to me.”

3.             Something notable for its beauty, excellence, or enjoyable quality.
                      Example: “The real estate agent I picked was a dream to work with.”

4.            A strongly desired goal or purpose.
                      Example: “I have a dream of paying cash for a home one day.”

5.             Something that fully satisfies a wish.
                      Example: “Now that I own a home, I’m living the dream!”

As you can see, dreaming is a valuable tool when it comes to buying or selling real estate!

Looking deeper into the psychology of the American Dream the ethos is that life in America should be better, richer and fuller. Owning your own home therefore helps you to achieve a better, richer and more full life. Why is that? What is it about home ownership that gives people such satisfaction? According to the National Association of Realtors:

Among the findings of NAR’s “American Attitudes About Homeownership” survey:

  • The vast majority of both home owners and renters say that owning a home is a smart decision over the long term. Even in today’s challenging economy, 95% of owners and 72% of renters believe that over a period of several years, it makes more sense to own a home.
  • Home owners are much more likely to be satisfied with the quality of their family and community life than renters. While more than half of owners (56%) are “very” or “extremely” satisfied with the overall quality of their family life, only about one-third (36%) of renters report the same levels of satisfaction. Also, 43% of home owners are “very” or “extremely” satisfied with their community life, compared with 30% of renters.
  • An overwhelming majority of home owners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.
  • Most renters aspire to home ownership. The majority of renters (63%) say they are at least somewhat likely to purchase a home at some point in the future. Among them, young adults (18- to 24-years-old) have the strongest aspirations for home ownership.

A recent Trulia survey showed that 70% of you still believe – even in this challenging real estate market – that home ownership is a part of your own personal American Dream. My own belief is that owning your own home does come at a price, but that is precisely why it is so rewarding. The price is hard work and sacrifice for most of us. It takes discipline to save for a down payment. It takes foresight to put off instant gratification to achieve a goal. It often takes time to find just the right home to fit your needs. But, when you walk through the door of your dream home there are no words to express that feeling of accomplishment (that is of course after you tear out the kitchen, repaint all the rooms, remodel the bathroom…). You own it. It’s yours. You can do with it whatever you like, and that feels good.

Los Angeles Real EstateSo go ahead and dream big my friends. Home ownership can still be quite lucrative and is truly satisfying. Let me help you to embrace part of the American Dream. I am here to assist you in consciously navigating your way to home ownership – during your waking hours of course. There is no better way to get you on the path to that better, richer and more full life then by owning a piece of Los Angeles real estate.

Navigating Los Angeles real estate listings can be quite challenging. I have been selling real estate in the San Fernando Valley area of Los Angeles for almost eleven years. I find that I am uniquely qualified for this career because it requires all manner of skill sets – and if you get to know me you’ll find I have developed a very diverse skill set over my many years in business. To be a real estate agent one must be adept at marketing (yes, yourself as well as a property), have the ability to juggle (sometimes coordinating the schedules of five or more people for only fifteen minutes together), know a great deal about your market (which takes being actively involved in your community) be able to skillfully evaluate properties (this is an art not a science), and have the capacity to negotiate, facilitate and coordinate (any number of problems, issues and utter catastrophes).

Given all this, what I have found to be the biggest component of facilitating a successful real estate transaction however is understanding the psychology of the individuals involved. First timers need guidance and education. Flippers need timing and the most current market information. Families moving up need relevant school and neighborhood information. Investors need historical statistics. What I find most interesting is that even the most emotionally removed “investor” just looking only at the numbers will more often than not, become emotionally involved in this transaction. Buying property is an emotional experience. I get that.

So let’s think about this. Why? Why is this such an emotionally charged endeavor? The first thing, obviously, is money. It’s an investment of a hell of a lot of money! It’s often the biggest debt or most amount of money a person will ever spend in one chunk in their entire life. Gamblers excluded of course (ha!).

Secondly, before the real estate crisis, buying a home was also a point of pride with many people. They scrimped and saved up all their money to buy something that they could own for the rest of their lives. Well, that changed during the time when people could buy a house if they had a social security number and a pulse. The “pride of home ownership” was easy to ditch when it came down to either keeping up living beyond ones means or feeding the

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May 132011

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