Diderot's Robe and a Dodo's Conundrum

There are a lot of Dodos in Real Estate, and while there aren't any at Woodards, we do have a Dodo's Conundrum. The thing is, we are in the highest-demand property market in Melbourne (and possibly the country). Actually, now that I think about it, with Melbourne being the 5th most expensive city in the world to buy property, and the median price in Toorak being the most expensive suburb in Melbourne, it isn't too much of a stretch to say that we are working in one of the most in-demand areas in the world. But back to the Dodo's conundrum...

This demand creates an environment where we speak to thousands of buyers a week (1,551 so far this week), but don't have nearly enough properties to sell them. Just like the Dodo, we have beautiful wings but no way to fly. Most agents would get frustrated, and the level of service to these buyers would drop. But at Woodards South Yarra, we know that people don't actually want a Real Estate Agent: they want a buyer. Apart from the fact that we like to help people because it is the right thing to do, we know that by helping buyers in a better way, we actually serve our community of sellers in a better way.

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Speaking of better, plenty of people in Stonnington are victims of the Diderot Effect (more about that below). We want things we don't need for many reasons, but sometimes it is a slippery slope that we slide down unintentionally. But what does this have to do with housing? Well, if you ask Warren Buffet, who still resides in the five-bedroom home in central Omaha, Nebraska, he purchased for $31,500 in 1958, he will tell you that overspending isn't a good idea. That's why we focus on quality over quantity, because the bitterness of poor quality remains long after the sweetness of low price is forgotten.

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As always, if you are looking for quality, reach out to make sure we have the right brief so that we can help you navigate one of the most in-demand property markets in the world.

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The Diderot Effect

The famous French philosopher Denis Diderot lived nearly his entire life in poverty, but that all changed in 1765.

Diderot was 52 years old and his daughter was about to be married, but he could not afford to provide a dowry. Despite his lack of wealth, Diderot’s name was well-known because he was the co-founder and writer of Encyclopédie, one of the most comprehensive encyclopedias of the time.

When Catherine the Great, the Empress of Russia, heard of Diderot’s financial troubles she offered to buy his library from him for ￡1000 GBP, which is approximately $50,000 USD in 2015 dollars. Suddenly, Diderot had money to spare.

Shortly after this lucky sale, Diderot acquired a new scarlet robe. That’s when everything went wrong.

Diderot’s scarlet robe was beautiful. So beautiful, in fact, that he immediately noticed how out of place it seemed when surrounded by the rest of his common possessions. In his words, there was “no more coordination, no more unity, no more beauty” between his robe and the rest of his items. The philosopher soon felt the urge to buy some new things to match the beauty of his robe.

He replaced his old rug with a new one from Damascus. He decorated his home with beautiful sculptures and a better kitchen table. He bought a new mirror to place above the mantle and his “straw chair was relegated to the antechamber by a leather chair.”

These reactive purchases have become known as the Diderot Effect.

The Diderot Effect states that obtaining a new possession often creates a spiral of consumption which leads you to acquire more new things. As a result, we end up buying things that our previous selves never needed to feel happy or fulfilled.

If you want to know how to avoid the above, just check out James Clear's original article here:

https://jamesclear.com/diderot-effect