The real estate business has encountered different kinds of buyers throughout the years, and their similarities tend to be nothing more than that they bought a property. Some types of buyers stand out, however, thanks to the frequency of such types appearing in the market.
Some of the most frequent types of buyers are accidental or chance buyers, speculators, aggressive investors, passive investors, and the end-user.
Accidental or Chance Buyers
The chance buyers are those who simply bought a property thanks to the excellent engagement done by real estate brokers to would-be buyers. Such buyers weren’t actively searching for a property of their own and were only engaged by brokers and prompted to consider to make a purchase.
Speculators are the buyers who were prompted to purchase as they were swayed by the hype of buying properties or of the potential return of investment regarding a particular property. The speculators are those who have the “bandwagon syndrome” since they had no specific reason to buy a property besides the hype.
The properties owned by speculators tend to be unoccupied as evidenced by condos that have their lights consistently turned off as the owners remain undecided on what to do with their new properties.
There is another type of buyer present in the market, and this type is the most conscious of ROI or the return of investment on properties, the aggressive investor. Aggressive investors are always after the ROI and wish to maximize their profits when it comes to purchasing properties.
One more type present in the market are the passive investors who liken purchasing a property as making a long-term investment. This type of investor tends to trust in both the profitability and the stability of their property. Passive investors are forward-thinking and understand the appreciation of their project over time.
Under the end user type are both those buying for their business or those that are investing in a home. An end-user buying a property to meet business needs would likely use the product to function as a warehouse, a headquarter, an area for commercial display, and others.
The last type of buyer is the end-user who’s prioritizing to get a home. The choices on which property to get would depend on the location and convenience of the home. A property that’s close to schools and other establishments would be ideal for end-users as their family would have an easier time in such environment than on locations that are far from schools and other establishments. For more information on such buyers, see this infographic by Premium Properties PH.