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In Real Estate your personality makes you predictable, in Tennessee we are agreeable

A new study suggests that a person’s personality traits are predictive of his or her real estate decisions. Are you efficient, organized, thorough, diligent and detail oriented? Then you’re a good candidate for a fixed-rate mortgage.

Researchers gave more than 1,100 respondents a personality-assessment test, asking them to rate themselves on several personality traits, such as openness (e.g. artistic and imaginative); conscientiousness (efficient and organized); extroversion (sociable and energetic); agreeableness (forgiving and undemanding); and neuroticism (tense and moody). The respondents were then asked about their real estate preferences, including type of mortgage, desire to rent or buy, and investing in real estate or stocks. Researchers controlled for several variables, such as level of education, home ownership, age, gender, and income.

Results showed a very solid correlation between personality and real estate choices.

States with relatively high marks for Openness like South Carolina, tend to choose fixed-rate mortgages. The more Agreeable ones, like Tennessee, prefer owning to renting. Neurotic states, like New York, choose lower loan-to-value ratios on the mortgage.

This isn’t to say that every state’s real-estate profile lines up exactly with personality traits, but an individual’s personality can have real consequences on the way we choose to live.

Read the full story here.

Posted: November 3, 2014