How do you come to make the choices you do?
I’ve learned that there a number of interesting tendencies that play into how we decide, leading us into one of two camps. As you consider a real estate transaction, it is helpful to understand what kind of decision maker you are.
SATISFICERS & MAXIMIZERS
Coined by the economist Herbert Simon in 1956, “satisficing” is an approach to decision-making that prioritizes an adequate solution over an optimal solution. Gretchen Rubin sums up the difference between the two types of decision-makers, sastisficers and maximizers, in a post over at the Happiness Project:
Satisficers are those who make a decision or take action once their criteria are met. That doesn’t mean they’ll settle for mediocrity; their criteria can be very high; but as soon as they find the car, the hotel, or the pasta sauce that has the qualities they want, they’re satisfied. Maximizers want to make the optimal decision. So even if they see a bicycle or a photographer that would seem to meet their requirements, they can’t make a decision until after they’ve examined every option, so they know they’re making the best possible choice…
In ‘The Paradox of Choice’, Barry Schwartz argues that satisficers tend to be happier than maximizers. Maximizers must spend a lot more time and energy to reach a decision, and they’re often anxious about whether they are, in fact, making the best choice.
You’d think maximizers would at least feel content with their decision after all that work, but no! As anyone who’s ever researched a possible illness on the Internet knows, more information does not necessarily lead to peace of mind or better decision-making.
TAKEAWAY
Gathering additional information always comes at a cost. We’re better off setting our criteria for making a decision in advance (as in, “I’ll make the call once I know X, Y, and Z”). Once you have that information, make the choice and move on.