Finding a motivated seller leader is a skill that every real estate investor must develop. Motivated sellers are essentially individuals or entities eager to dispose of the property they own. To find out if you're dealing with a motivated seller, keep in mind some signs:
- Price - Sellers are usually prepared to list their properties at a price 10-30% below market value
- Conditions - Sellers are willing to offer favorable terms of sale, such as financing, 0% interest, or no reduction in funds
- Timeline - Seller hopes to complete the transaction as soon as possible
- To provide more information, here are some reasons why people are motivated to sell their properties:
- Living conditions - Sellers have a motivation to sell quickly due to factors such as separation, divorce, family birth or death
- Relocation - If a new job needs to be moved, the owner may want to sell quickly
- Vacant, negligent, major repairs - If a property is damaged, the landlord may not be able to spend money on renovations or repairs, or may be reluctant to use it. They would rather sell the house earlier.
- Foreclosure Threat: If landlords can't keep up with mortgage payments, they'll want to sell quickly to avoid foreclosure
- Inheritance - If heirs are unable to manage their estates, they will be eager to sell and close the property quickly
How to find a motivated seller: 4 great ways to try it today
Where to look, you can find a motivated seller in a few days or even hours. Here are some strategies for finding motivated sellers:
1. Contact your local lawyer
Lawyers always work with clients who need to sell their income and homes quickly for reasons including inheritance, divorce or bankruptcy. You can contact your local lawyer by e-mail or direct mail. Even better, face-to-face with them at business meetings and local events. Contacting the right lawyer is a great way to find motivated sellers. The focus is on lawyers enforcing real estate law, family law, insolvency law and real estate law/inheritance rights.
2. Direct mail marketing
Despite technological advances, direct mail marketing is still a very effective way to find motivated sellers. You basically need to browse public records and draw a list of potential sellers. Here are some signs to keep in mind when reviewing public records:
- Recent foreclosures
- The owner of the property is old
- Out-of-state owners
- A wide range of market days
- Absent owner
- the death of a co-tenant
Once you're compiling a list of aspiring sellers, send them an email or a letter asking if they'd like to sell. If you don't see the answer for a few weeks, be sure to follow up.
3. Establish a network with municipal and county inspectors
County and city inspectors always inspect properties and buildings to ensure they don't comply with the code. These mark properties for unauthorized landscaping, zoning violations, septic system violations, and unauthorized updates. When owners are overwhelmed by multiple levies, they can be motivated to sell quickly below market prices. Networking with inspectors is an effective strategy for compiling a list of motivated sellers.
4. Check the MLS expiration list
From unrealistic list prices to unfinished projects and poor screens, there are several reasons why a list can expire. To avoid the pressure of relisting, owners may be willing to make some concessions on face and price when selling offsite. To access an expired MLS listing, you must work with a licensed real estate agent.
How can I easily contact a motivated seller?
Some of these ways to find a motivated seller will lead you to the right contact information, but others won't, such as driving in US dollars. Want to know who owns the house? You can search by address or general area to get the owner's name, e-mail address, and phone number. Once you have the correct contact information, you can also use Dashboard to send an email to the home owner and an email campaign that attempts to negotiate and seal the contract.
Why are owners motivated to sell?
Motivated sellers can be forced to sell for a variety of reasons, but in almost every case, there is a distressing factor that motivates them to dispose of their property rather than meet a certain price or condition.
Here are some common reasons why sellers are motivated:
- Landlords are foreclosed or foreclosed and may lose their homes.
- Property taxes have expired and you cannot pay taxes to protect your home from tax sales.
- The property is in poor condition and requires repairs or has environmental factors that affect the safety or livability of the house (e.g. sinks, fire damage, storm damage or foundation problems).
- The property is inherited after being tested by the heirs (especially if the heirs are not in a state), and they have no time or desire to clean up, repair or list the property for sale.
- The property is losing money for them every month.
What are the benefits of working with motivated sellers?
Buying an investment property from a motivated seller may amount to a significant discount for real estate investors, usually 35-50% below the current market value, or in the future after repair. It can lead to the ability to buy investment properties without the hassle of repaying high-cost loans, such as hard currency loans.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2021 Vishal Meetoo