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Jan 19

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Real Estate Investing – How to Recognize a Motivated Seller

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10685511_10202771138215375_6358872255641081386_nI cannot begin to tell you how much time I wasted trying to negotiate a deal with a seller who was simply not motivated enough to lower the price on a property. I have met with hundreds of sellers, walked through countless properties only to find out in the end that the seller was not going to budge on the asking price. I would try to create motivation by showing the cost of repairs and explaining the property values of the surrounding properties only to realize that motivation can not be created it had to be initiated. The seller must come into the deal with motivation for a deal to be profitable.

I quickly realized that seller motivation is key to any real estate investment deal. Let’s face it if the seller of a property is not motivated there will never be a profitable real estate investment!  With no motivation to sell the property the seller is willing to sit and wait  until they get what they are asking for the property. With no desperation to sell, no urgent circumstances the seller will never open up to your reasoning to discount the property.I have learned to simply walk away if a deal lacks seller motivation. I now determine the motivation level of a seller before I waste my time even looking at the property. I want to know their current reasoning for selling and the circumstances that led up to their decision to sell.

Let’s ace it, we all want to find those motivated sellers. Those property owners who simply need to make a deal with an investor in order to unload their burden of a problem property. Therefore the first thing we must do as Wholesalers or Real Estate Investors is to understand what makes a seller motivated. What makes a seller so motivated that they are willing to negotiate to initiate the sale of their property in an effort to unload their burden property.

Here are some of the circumstances that make a seller motivated enough to create a profitable real estate investment deal.
1. They desperately need to sell their property because of financial circumstances. The loss of a job, the death of a loved one etc… Something happened that changed their financial situation.

2. They are in an Adjustable Rate Mortgage and can no longer afford the increasing payments due to lack of employment or insufficient income.

3. They are in pre-foreclosure and need to sell their property to avoid an inevitable foreclosure.

4. They must relocate to another state due to job transfer or military deployment.

5. The repairs needed on the property are more than they can afford.

Your success as a Real Estate Investor or Wholesaler depends on your ability to distinguish between a motivated seller and a non motivated seller. You will never convince a non-motivated seller to turn into a motivated seller. You will be wasting valuable time trying to transform a seller who does not have current circumstances to make them motivated enough to make a deal.

Evidence of a motivated seller depends on the answer to two basic questions.

1. Would you sell your house for what you owe on it?

2. Would you let me buy your house by taking over the payments?

3. If there is no mortgage balance would you be willing to owner finance the property with a small down payment?

If the seller answers “yes” to these questions they are truly motivated and you should be able to lock in a great deal. If they say “yes” to question 2 then you could possibly take over the property and continue making the mortgage payments with literally no money down. This is know as a deal “subject to the existing financing”. You could keep this property for yourself or wholesale it to a buyer for a wholesale fee. For a Step- By- Step Guide to taking over a property subject to the existing financing with all of the contracts to complete the deal check out my new eBook UNLEASH THE POWER OF THE LAND TRUST.

If the sellers answer is “no” to these questions then they are evidently not motivated and you will be wasting valuable time trying to negotiate. I suggest that you check back with this seller in 30 days as motivation can change over time. For now just move on until you find that motivated seller that is willing to negotiate a great investment deal.

There are Real Estate Investment deals and then there are GREAT Real Estate Investment deals. A motivated seller is the difference between the two!

 

To Your Success,

Carol Stinson

About the author

cstinson

Carol Stinson is a Real Estate Mentor, Author and Entrepreneur who continues to thrive in today's real estate market. Her concept of success is to never stop learning new techniques and then put what you learn into action expecting results. She is dedicated to helping others succeed by sharing what works in today's real estate market. Her strategies are effective, her techniques work and she is always updating them to conform to the ever changing real estate market.

Carol's biggest passion is people! Her love for others and dedication to help them succeed is genuine and ongoing. She created Real Wholesaling in an effort to help others find their way to financial freedom through real estate.

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