Motivated Sellers
A motivated seller can be a real estate investor’s best friend. Motivated sellers are those sellers that are looking to sell their home quickly. These sellers are often not very much concerned with the sale price of the home. Instead, their main objective is to sale their home as quickly as possible. Investors can make use of these kinds of sellers for many different reasons.
It can be extremely difficult for an investor to purchase from a seller that is not motivated to sell. This tenet goes with anything. It is nearly impossible to convince a person to give up something which they are not willing to give away. This especially goes for real estate. If a real estate owner does not have a reason for selling property, any investor would have a difficult time convincing that owner to do otherwise.
When working with a motivated seller, an investor does not have to do much work convincing the owner to sell the property. This is because the seller has already made up his or her mind that selling the property is the best decision to make. In many cases, a motivated seller has gone through other avenues of solving the problem that led to the need to sell the house. After seeking other solutions to no avail, the motivated seller settles on the fact that selling the home is the only option. A motivated seller is the polar opposite of a owner that has no willingness to sell.
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. Investor’s can often negotiate prices that are well below market value of the home. Often motivated sellers are almost to a point of desperation when it comes to selling property. Once a seller has reached this point, he or she is almost begging the investor to take their property off their hands.
Motivated sellers often give better deals and perks with selling property than sellers that aren’t so motivated. These sellers will often pay a percentage of the closing costs. Some sellers will pay the maximum amount allowed by lenders which is usually 6%. This deal works well for the investor because it means that the investor does not have to spend as much money on closing the deal as he might have to spend in another situation. Not only do some motivated sellers pay towards the closing costs, they also pay other fees associated with the sale of the property. This includes loan officer fees and other fees that are included with closing the loan.
Of course, it is important for investors to make sure that they fully understand the reason that the seller is motivated to sell their home. There could be some defect with the home that would end up costing the investor in the long run. Make sure to do all due diligence checks before closing on the home.