Influences and Emotions: Exploring Family Decision-making Processes when Buying a House

Abstract

The decision to purchase a house is embedded within a set of economic and sociocultural processes and is operationalized within the context of a specific local property market. In the residential mobility literature considerable attention has been given to examining issues of house prices, life-course and demographic influences on the decision to buy, but less attention has been directed to understanding the internal family decision-making process. While the act of purchasing a property constitutes a significant economic event for a family, the process of purchasing a house is an inherently social activity, involving setting goals, discussing and negotiating family needs, interacting with exchange professionals (information intermediaries), imagining modifications to potential purchases and interpreting market trends. These family activities are shaped by family structures, gender roles, ethnicity and socio-economic status. In addition, the house purchase process takes place within specific market conditions and institutional practices. For example, in New Zealand, the estate agent has a large amount of power when negotiating contracts between buyers and sellers. Using in-depth interviews, this paper examines family decision processes in Auckland from the perspective of estate agents who deal with families purchasing houses on a daily basis, and formulate their own understanding of buyer behaviour, and adult family members who have recently purchased houses. The analysis makes it possible to explore the ways in which estate agents interpret the purchasing behaviour of families and to compare these interpretations with the understandings of adult family members. The study offers insights into the ways in which families engage in search practices, interpret information and internally negotiate decisions. It is argued that the findings here contribute a greater understanding of how housing markets are performed and made.

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