Fresh Start Effect

The fresh start effect is a cognitive bias that refers to our tendency to feel more motivated to make positive changes when we are confronted with a new beginning. This can be particularly powerful in the real estate industry, as it can motivate people to reassess their current living situation and consider significant changes, such as purchasing a new home or making significant renovations to their current property.
In this article, we will explore the impact of the fresh start effect on people looking for a new home, and how real estate professionals can take advantage of this effect when working with clients.

The fresh start effect explained

Going to the gym in January can be overwhelming, I spend most of my time competing for machines from people I have never seen. Fast forward to the end of February, and the gym returns to normal capacity with familiar faces. This phenomenon happens due to the fresh start effect.
The fresh start effect is a cognitive bias that refers to our tendency to feel more motivated to make positive changes when we are confronted with a new beginning. One of the most prominent new beginnings is the start of a new year but includes things like a new job, a new month, and even a new week.
A study by Dais et al. (2014) found that people were more likely to attend the gym and search for diets at the beginning of a week, month, or semester. The researchers found that new beginnings create an interruption that allows us to dissociate from our past selves and mistakes, shifting our perspective and increasing our motivation.

Buying a property can be triggered by the fresh start effect and trigger the fresh start effect

The start of a significant life event such as a new year gives individuals an opportunity to reassess their living situation and consider a change. This can lead to a desire to move to a new home or make significant changes to their current property. For example, someone who has outgrown their current home or is no longer satisfied with their neighborhood may be more likely to consider moving to a new location if they have recently experienced a fresh start, such as the end of a long-term relationship or career change.
When purchasing property, customers are experiencing a fresh start. A new home that will increase interest and motivation to start something. For example, someone would be more likely to learn a new language if they just purchased a vacation home abroad.

What does this mean for Real Estate professionals?

Overall, the fresh start effect can be a powerful force in real estate decision-making, as it can motivate people to reassess their current living situation, take action, and consider significant changes.
By keeping this effect in mind, real estate professionals can better understand and anticipate the needs and motivations of their clients as they consider buying or selling a property.