Why In The World Buy a House? Because you have D needs!

D Needs? yes, according to Abraham Maslow's hierarchy of needs, housing pretty much scratches every itch. From the basic need for shelter, air and food and water our needs progress up. As soon as one need is satisfied, another need arises. And if you are deprived of a need, you default back to getting that one satisfied, pronto. The people in Haiti are now preoccupied with shelter and food. Any higher needs are on hold until that basic need is fulfilled. And so we live our lives. That is why 'noblesse oblige' works. Those who come on line with the baser needs in place provided by parents and family money, can work on self actualization sooner. Their bellies are full. They can contribute to others moving up their own pyramid. The baser needs referred to as D needs or deficiency needs, and the higher ranks a B needs. Here's the list:


1. Physiological Needs (lizard brain) {amygdala}
These include the most basic needs that are vital to survival, such as the need for water, air, food and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.
2. Security Needs
These include needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health insurance, safe neighborhoods and shelter from the environment.
3. Social Needs (dog brain) (limbic system)
These include needs for belonging, love and affection. Maslow considered these needs to be less basic than physiological and security needs. Relationships such as friendships, romantic attachments and families help fulfill this need for companionship and acceptance, as does involvement in social, community or religious groups.
4. Esteem Needs (ah, human mind)
After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition and accomplishment.
5. Self-actualizing Needs
This is the highest level of Maslow’s hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others and interested fulfilling their potential.



But back to houses.

Certainly if you are choking, starving, dehydrated or sleep deprived, nothing captures your attention except the satisfaction of that need. But if you are reading this , we can go on to Need #2. Houses answer the call for shelter, they answer need #2, the need for security and certainty. Coming home to a nice warm house in a good welcoming neighborhood, fits #2.



How about #3? Social needs. A house fulfills the desire to belong: belong to a neighborhood, a country club, a street of party givers, a community. A home is the base unit of Need #3.



#4. Okay, here's the trophy house buyer.. Number 4 is about self esteem.. Reflected glory. The big dog neighborhood you made it into. Wine cellars, pools, built in aquariums, media rooms. Oh yeah baby, number 4 is all about real estate and home ownership.



And last? The downsizer.. He is all done with climbing the ladder, pandering to others opinions, keeping up with the Jones'. He like his port, his hybrid camellias and a simple life. Need #5 says, "I am the master of my fate and the captain of my soul" (Invictus)



So don't fight it. If you have a steady job, don't overbuy, pick a great location, know your lender and the terms of the loan, find a Realtor that will steer you away from an impulsive or misguided choice, go ahead.. move up the pyramid, you have needs. Now some facts:



From Dataquick: An increase from November to December is normal for the season. Last month’s year-over-year increase was the 16th in a row. The sales count was the highest for a December since 8,372 homes were sold in December 2006. Sales for Decembers since 1988 have ranged from 5,065 in 2007 to 12,349 in 2003, while the average is 8,762.



The rich are doing fine according to American Express: AmEx dominates the market for affluent customers, with individual card purchases averaging $9,392 in 2008, compared with $2,699 for San Francisco-based Visa Inc. and $2,269 for Purchase, New York-based MasterCard Inc., AmEx said in August, citing company reports.
At year end, AmEx had lowest loss rates among the six- biggest U.S. credit-card issuers, including JPMorgan Chase & Co. and Bank of America Corp. according to Bloomberg.



I think American Express also showed wisdom and vision in dealing with long time clients in trouble with the recession by cutting interest rates, allowing principle reductions and maintaining relationships. Those prudent customer service moves are paying handsomely.



That's the news this week in Real Estate.



Peace and competence,



Terry