When buying a beach home, you should be aware of speculative sellers. Glenn Phillips, CEO of Beach Homes Realty, explains what speculative sellers are and what you should know about them.
- Two Types of Sellers:
- Motivated: Life circumstances push motivated sellers, such as a job in a different city, to sell their house. The time it takes to sell their house matters to them.
- Speculative: Speculative sellers may not be in a hurry to sell. Dealing with these types of sellers requires a different mindset than with motivated sellers.
- Speculative Sellers: When speculative sellers list their home, they’re listing it in a different way than other sellers.
- Overprice: Speculative sellers tend to overprice their homes for the current market. When this happens, the home sits on the market for several weeks or even months.
- Lack of Urgency: Speculative sellers are fine with waiting to get their desired price, as they aren’t motivated to sell quickly.
- May Lack Market Understanding: Sometimes, speculative sellers aren’t being deliberate in their methods. They may simply lack an understanding of the current market conditions. They may list their home at what they see other houses listed for, even if those houses aren’t selling.
- Emotionally Driven: Oftentimes, sellers get emotionally attached to certain aspects of the home. This could be certain customized decor or installations added to the home. Home sellers might perceive them as added value, but buyers don’t care about them.
- Frustrated by “Low” Offers: Speculative sellers become frustrated by “low” offers when the house sits on the market for a while. Even if the offer is at market price, speculative sellers can take that offensively.
As a buyer, you need to be able to recognize when you’re dealing with a speculative seller. Understanding how these types of sellers work is crucial in the beach real estate market. It often requires you to think outside the box and create a sense of urgency for the seller. Visit beach-homes.com, where you can find agents who will help you through the beach real estate homebuying process.