Speculative Vs Non Speculative Buying
A speculative buyer is someone who is buying a property and anticipating the value of the property to be higher than it is or to set a new value in the area. These are usually purchases where people are trying to pioneer a pocket of their market in setting the new values. The gamble here is based on a section of the market transitioning and improving. A non speculative buyer is someone who is basing their purchase on the actual comps that are currently in the market. They would not make their purchase based on potential future values and are only concerned with what the market is doing today. There is a hybrid version of the spec vs non spec buyer, but for right now that is not important. A speculative buyer usually gambles big and either wins big or loses big. They are the people changing markets and they normally have very deep pockets. It is a much riskier type of acquisition so for people that are new and even seasoned, it is strongly recommended to use the non speculative approach as the data you have is concrete and much more substantiated.
Ian Walsh
215.839.3271
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