Everyone’s heard of the cliché “motivated seller.” It is, of course, the poor seller who has to unload a home because of a job promotion or perhaps a health problem or some other type of economic distress or in these times, bank foreclosures.
Some people I know in real estate claim a motivated seller is an investor”s “best friend.” Why? Because they want to sell as quickly as possible. Sorry to say, these are often desperate sellers wlling to do anything to unload their homes, despite the beating they will take on the price.
Working with a motivated seller puts an investor in a position where he is able to offer a bargain. In most cases, there is not much of a need to negotiate on a price. Investors can often negotiate prices that are well below market value of the home.
Often motivated sellers are almost to a point of desperation – he or she is almost begging the investor to take their property off their hands.
Of course, buyers need to exercise some due diligence here: is there a reason the seller wants out because of a major defect in the home?.
Leaving out bank foreclosures as another subject, why should you look for motivated sellers to buy your investment home? As the poet says, let us count the ten reasons.
- First, you are almost certainly going to get a bargain price. That is obvious.
- Sellers are also often willing to be more generous about terms such as paying more in closing costs. Some will even accept the maximum numbers in their eagerness to unload their property. They may also be more inclined to pay other costs and fees as well.
- There’s limited competition from other buyers.
- Think of all the difficulties from purchasing from the opposite or an unmotivated seller. It’s simply easier to deal with someone who already has made up his or her mind to sell, and there are no more qualms about “what if’s.”
- Your “ernest money” is typically less (particularly when it comes to banks).
- It’s far easier to control the deal and simplify everything.
- You reduce marketing costs.
- Scheduling visits to see the home is often far less difficult because the attitude is generally “Hey, anytime it’s convenient for you.” Compare that to most sellers who may want you only on Saturdays from 9 to 10 a.m.
- You often have time to spend with the sellers to find out what they REALLY will take despite the higher asking price.
- No need for proof of funds.
If all of this sounds like you are taking advantage of some poor unfortunates who have to sell, you don’t have to think that at all.
In fact, you are actually helping others get out of a tough situation. If nothing else, you can feel that your transaction goes beyond dollars and cents. Buyers from motivated sellers have told myself and others frequent stories of gratitude. And how often do you make someone happy by giving them a rock-bottom price?