Decision-making is an integral part of a person's life. It mainly comprises every stigma, every action that a person needs to do, in choosing what clothes to wear, what foods to eat, or even in some major choices like what house to buy.
Each and every person's decision-making patterns are unique and this uniqueness is partly due to a person's personality. Realty Times reported that the unique individual differences of every person can predict what kind of home the person would most likely purchase in the future.
The study according to the outlet was rendered to 1,100 respondents and a psychological testing exam called "Five Factor Model" or (FFM) was facilitated. The study entitled "Real Estate and Personality" mainly focuses on the "relationship of personality and buyer decisions."
"Researchers gave more than 1,100 respondents a personality-assessment test, asking them to rate themselves on several personality traits," based from Lakeside Real Estate Group.
The researchers let the participants rate themselves from the the five core personalities in FFM.
"Among the 1,110 questions in the study, participants were asked to rate themselves on personality traits related to the FFM, including: "openness (e.g. artistic and imaginative); conscientiousness (efficient and organized); extroversion (sociable and energetic); agreeableness (forgiving and undemanding); and neuroticism (tense and moody)," according to the publication via Lakeside Real Estate Group.
The results of the test according to Tel Aviv University professor Danny Ben-Shahar gave out a "very solid correlation." With this, there is a better understanding now on how buyers will likely purchase a home.
"High scorers of neuroticism, for example, showed a preference for home ownership over renting and tend to opt for mortgages with lower loan-to-value ratio - likely because neurotic people tend to be more averse to risk, Ben-Shahar says. Meanwhile, respondents who scored high on agreeableness or extroversion, as well as conscientiousness, showed a preference for investing in real estate over stocks. Researchers speculate that conscientious people are more willing to postpone gratification and likely to make a less-risky investment while also diversifying their portfolio," as cited from the article (National Association of Realtors).
