The importance, difficulty and irreversibility of home buying decisions are closely
related to the two components of perceived risk: possibility and importance of loss.
Obviously, the more important a house is, the greater the loss is if the home purchase goes
awry. Moreover, making difficult decisions in home buying means uncertainty about the
decision outcomes, which is associated with the possibility of loss. Irreversibility of
housing results also indicates that the chance to undo the decision outcomes is rather low,
and thus the possibility of loss is likely to be increased. Therefore, three hypotheses of the
home buying decision are proposed: