Analysis Paralysis!

Discussion in 'Where to Buy' started by Jacque, 9th May, 2012.

  1. Jacque

    Jacque Buyers Agent and Bookworm

    Joined:
    5th Jul, 2001
    Messages:
    4,618
    Media:
    39
    Location:
    Sydney
    I had an interesting conversation with a former client today who was referring a colleague to our BA services. When I requested further information about the buyer, I was told she had been "embarking on analytical research for a period of time but couldn't come to a definite decision on what or where to buy".

    No biggie there- this isn't unusual, as we often have investor clients who are after some suggestions/recommendations on area and type of dwelling. However, when I asked how long she'd been researching the response:
    "About 5 years".... :eek:
    Now that's what I call analysis paralysis to the nth degree! It also turns out that this particular lady had contacted 4 FP's and about 20 BA's as part of her "research" and was none the wiser.... oh dear. Sometimes, people, you just have to make a decision during your lifetime :confused::D
     
    Last edited: 9th May, 2012
    Propertunity likes this.
  2. traveller

    traveller Member

    Joined:
    14th Feb, 2007
    Messages:
    271
    Location:
    Melbourne
    Some people just want it to be perfect and not an iota less than that will do...and that's when they come up with one negative or the other with every IP they research...
     
  3. Belbo

    Belbo Moreover a misfit

    Joined:
    14th Feb, 2010
    Messages:
    1,789
    Location:
    Sydney NSW
    Reminds me of a bookkeeper job applicant who sent me a CV showing they'd done about 20 training certificates in the last 5 years but hadn't taken any work. Replied to the applicant that lack of actual experience precluded consideration, and was rudely informed that I was clearly a fascist-type boss who was intent on working staff to death. Two years later I needed to re-advertise the position and astonishingly the same applicant contacted me now with 30 certificates on their CV but still no work experience. I didn't reply.
     
  4. Rolf Latham

    Rolf Latham Member

    Joined:
    2nd Mar, 2001
    Messages:
    18,791
    Location:
    Confused = Sydney, Brisbane and Gold Coast
    We get them too, though usually by the time Im finished with them one of 2 things happen.

    1. They run back to someone else that will listen to their "stuff", and will do their bidding, or go back and forth for the next 6 mths, and do nothing.

    or

    2. The logic or emotion pill works and they commit to going down a particular path, either with us or someone else.


    Most over analyser folks have been programmed from early childhood that making a mistake is absolutely not acceptable.............and that program has been running much of their lives.

    Some specialists in the field believe 95 % of our decisions arent. The outcomes are "logical" conclusions of the programs we run.

    ta
    rolf


    ta
    rolf
     
  5. matto_

    matto_ Member

    Joined:
    19th Apr, 2010
    Messages:
    992
    Location:
    Melbourne
    The hard piece with analysis paralysis is that time passes you buy. What people often don't consider is the opportunity cost of NOT investing.

    Over five years,a whole lot could happen, but that is investing. I would hope that this person at least had their cash in the bank, as opposed to under their bed.
     
  6. Terry_w

    Terry_w Member

    Joined:
    19th Mar, 2012
    Messages:
    9,610
    Location:
    Sydney, NSW
    I've found people with IT backgrounds tend to suffer from this disease. Constantly doing spreadsheets etc.
     
  7. virgo

    virgo Always-willing-to-learn

    Joined:
    11th Sep, 2005
    Messages:
    1,428
    Location:
    Sydney, NSW
    A.p.

    Or those with an accounting background...:psorry..
     
  8. virgo

    virgo Always-willing-to-learn

    Joined:
    11th Sep, 2005
    Messages:
    1,428
    Location:
    Sydney, NSW
    This is absolutely one of the best observation i have heard....a good reminder in my attitude towards raising my kids.....THANKS ROLF:)
     
  9. traveller

    traveller Member

    Joined:
    14th Feb, 2007
    Messages:
    271
    Location:
    Melbourne
    ;) I am from IT background and yes i do have long spreadsheets that no one else can seem to make sense of...but....i have close to a dozen ip's now :)
     
  10. vaughan

    vaughan Member

    Joined:
    26th May, 2010
    Messages:
    1,741
    Location:
    Willoughby NSW

    Aren't you having trouble working out when to STOP buying? :D
     
  11. Propertunity

    Propertunity Real Estate Buyers Agent

    Joined:
    1st Jul, 2008
    Messages:
    9,698
    Media:
    1
    Location:
    NSW Central Coast, Sydney, Newcastle and Lower Hunter
    Yes, but where you differ, is that you do the research and then you take ACTION. Many just stop at the research stage. ;)
     
  12. Blurbman

    Blurbman Member

    Joined:
    24th Feb, 2012
    Messages:
    70
    Location:
    Sydney,NSW
    It was well put a few months ago somewhere in the API magazine where someone said the most common characteristic of successful people is not above average intelligence, or a wealthy background, but simply the ability to make a decision.

    It's never possible to get every bit of relevant information because by the time all the material is available, the opportunity has passed. And there will always be a negative to an investment but the best ability is to judge whether it is still worthwhile to go ahead anyway.

    While occasionally there may be a bad investment etc, the good will outweigh the bad overall.
     
  13. Rolf Latham

    Rolf Latham Member

    Joined:
    2nd Mar, 2001
    Messages:
    18,791
    Location:
    Confused = Sydney, Brisbane and Gold Coast
    A true analyser NEVER stops, there is always something to maximise the equation, investment, relationship, etc.

    Every now and then, what we see is as compulsive behaviour actually produces some extraordinary brilliance in science, medicine or other human endeavour.

    All of us have our dominant personality that we "retreat to" and that we know well, some of us are more obvious about it.

    Not one is better than another in general, however being aware of, and working with our "blind sides" can transform our lives.

    ta
    rolf
     
  14. Lamingtons

    Lamingtons Member

    Joined:
    30th Aug, 2007
    Messages:
    788
    Location:
    Melbourne
    Definitely agree. I would say that accountants are naturally risk averse (i generalise of course). I believe Steve McKnight was an accountant. I vaguely remember him coming to talk to us in Uni... it was a longgg time ago.
     
  15. 7smurfs

    7smurfs Member

    Joined:
    12th Jan, 2012
    Messages:
    164
    Location:
    Melbourne, VIC
    Oh how I've met so many accounting/finance people who are exorbitantly risk adverse!

    It's a killer trying to talk to them about property investments and other asset class investments in general...
     
  16. Lamingtons

    Lamingtons Member

    Joined:
    30th Aug, 2007
    Messages:
    788
    Location:
    Melbourne
    Oh I know! I am sick of hearing about the financial apocalypse.

    Off topic: Speaking of financial apocalypse. I got into a "Jesus cab" once. He would not stop preaching to me and how Jesus is coming and you are either with him or you will suffer. Lots of suffering is coming to people soon because of global warming and how the global financial market is collapsing. I could not run out of that cab fast enough.
     
  17. lizzie

    lizzie when i grow up ...

    Joined:
    13th Sep, 2004
    Messages:
    11,736
    Media:
    2
    Location:
    back in the painting clothes
    I was once married to an accountant who was the complete opposite ... very risky.

    Problem was that he saw his clients, who had taken a risky gamble early in their careers (10-20 years previoius), or had innovative ideas, now making lots of money and prestige ... his problem was that he wanted the money and prestige now - so took stupid financial risks and like to spend money we didn't have.

    But I know that was from his upbringing ... and I blame his money hungry, never good enough mother.
     
  18. Property Meister

    Property Meister Member

    Joined:
    10th Sep, 2007
    Messages:
    1,461
    Location:
    VIC
    I know someone who analysed the market for 10+ years!!!!! me!!!!

    in 2001, I set out in the search for my first property, my mother at the time said "oh the property market is about to crash".................

    she still is saying it to this day, the only thing is, one day she probably will be right, when I will be told "I told you so!"
     
  19. Belbo

    Belbo Moreover a misfit

    Joined:
    14th Feb, 2010
    Messages:
    1,789
    Location:
    Sydney NSW
    Speaking as a bloke: Lots of fellas do the same thing in the marriage market too!
     
  20. traveller

    traveller Member

    Joined:
    14th Feb, 2007
    Messages:
    271
    Location:
    Melbourne
    Though i agree that i use spreadsheet extensively to compare and evaluate opportunities and investments, i will have to say that my final decision is based on gut feel alone...

    Example - I just had evaluated a very good deal and on spreadsheet it was the best i ever have(maybe sign of times now compared to last 7-8 years) but in the end i couldn't convince myself to go ahead with it...just didnt feel confident about the IP and the suburb itself...just my gut feel.

    I have also noticed that as i have purchased more and more i have become very conservative compared to earlier times. Partly family pressures of not over extending, partly the uncertain economic times as well....