Post-traumatic real estate personalities

Clinical psychologists know that a formerly well and intact psyche can split into multiple personalities under the pressure of a severe childhood trauma.

In patients with dissociative identity disorder, formerly known as multiple personality disorder, the theory is that during intense episodes of trauma, the memory and awareness of the distress are diverted into a new personality, so the original personality can cope.

Wash, rinse, repeat a few times, and you get a fully developed, separate personality that can emerge throughout the rest of the patient's life when he or she is in stressful situations.

To my mind, economic conditions over the last couple of years have comprised the equivalent of intense, repeated distress for many of the consumers who are actively buying or selling real estate right now -- and I'm seeing some definite alter-ego behavior out there, much more than I did before.

Whether it happened to the consumers themselves or to a member of their circle of intimates, job loss, bankruptcy, plummeting property values, falling behind on bills and foreclosure -- each of these is a split-worthy stressor -- and the lingering fear or dread that one of these might still be around the pike is causing buyers and sellers to operate out of their normal personality almost all the time, but allowing their stressed-out alter ego to take the wheel when their transactions turn stressful.

Most of these stresses that poke a buyer or seller's alter out of hiding and into plain view involve critical decision-making junctures in the timeline of their home purchase or sale.

Bold buyers who knew the home was theirs the moment they walked in become weak-kneed, namby-pambies wracked with indecision when it's time to pick an offer price. Now -- even the most confident homebuyer can struggle with this (admittedly tough) decision, but those who go from "full speed ahead" to agony and paralysis at the precise moment their bold action is most necessary?

Increasingly, I'm hearing their meek "alters" express a post-traumatic, freezing fear of overextending themselves and ending up like so-and-so they know, who lost their home to foreclosure and now lives in a wreck of an apartment.

Short-sale home sellers who had absolute clarity as to their motivation and urgent timeline for selling get mired in second-guessing hesitance, panic at the finality of their looming decision and anger at what they perceive as the injustice of the situation when they get a lowball offer. "But I paid 'X' for it -- why should they get it that low?" "Why will the bank let them buy it for that price, but not reduce my principal to that same price?"

Why, indeed.

Decision points like which home to buy, how much to offer and whether to remove contingencies all posit the specter of "no turning back" to a buyer's mind, prompting them to speculate as to how market-proof their own household economy is as they have flashbacks of friends and family members whose formerly secure worlds were turned topsy-turvy by financial crises. ...CONTINUED

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