The 10 Types Of Motivated Sellers | Part 1
If you want to learn How To Purchase Real Estate, make sure you know the 10 most common types of motivated sellers.
While buying a property can happen quick, it is also perhaps the most important part of the house flipping process. If you wish to make a profit at the end of your project, you need to buy the right house.
What most real estate investing experts will tell you is to find a motivated seller. Easy enough, right?
But what is a motivated seller?
In essence, a motivated seller is a person who wants to sell his or her home as quickly as possible, and is less concerned on getting the full value of the property. For this reason, you as a buyer might be able to get a great deal on a property through these people.
The 10 Most Common Motivated Sellers | #1-5
To put this strategy into action, you need to know the types of people you should be looking for. Below is part one of our two-part series, The 10 Types Of Motivated Sellers. Here you will find types #1-5: Landlords, Heirs, Homeowners Under Threat Of Foreclosure, Banks Who Own REOs, and People Who Are Transferring Jobs.
Sometimes, a landlord might not be making as much money as he wants to on a particular property and wants to sell. He might do this because the house is continuously depreciating in value, or because maintenance is exceeding the amount of money he is making each month from rent.
Unlike standard personal-owned properties, lease agreements allow the landlord to evict the tenant at the end of their term, making for a much quicker process. This fact is even more of a factor when the lease agreement is monthly or at-will.
If you’re thinking of purchasing a cheap property, this might be the right route.
After an individual dies, the person’s assets can be passed down to his or her heirs through the will. One of the main assets is usually the home of the deceased.
The heir or heirs often do not want the property and choose to sell it. Since no one will be living in the home, they are only losing money on it the longer they hold on because of insurance and taxes, and they will want to sell it as soon as possible.
If done through probate court, and the heir does not want to property, the court will assign a representative to sell the home. The representative will usually be willing to negotiate down considerably on the price of the property.
3. Homeowners Under Threat Of Foreclosure
You might find the deal you are looking for in a pre-foreclosure, or short sale. A short sale is when a homeowner cannot pay their mortgage and is very close to being foreclosed on by the bank.
In order to save their credit, the homeowner will sell the home if the bank agrees to forgive the remaining mortgage owed.
The homeowner will be extremely eager to sell the property to avoid foreclosure. Because of this, short sales can be one of the best ways to get a great deal on a property.
4. Banks In Possession Of REOs
When a house is foreclosed upon, it typically becomes eligible for sale at a foreclosure auction. However, if it does not sell at the auction, the lender (usually a bank) keeps possession of the property.
While holding onto the home, the lender is losing money fast. Additionally, the property is always under threat of vandalism, since no one will be responsible for watching it. The lender wants to the property off of its hands as quickly as possible and is usually willing to negotiate down past the starting price at the auction considerably.
5. People Who Are Transferring Jobs
With the economy as bad as it is, jobs can be hard to come by. Sometimes, if a person is offered a job in another town or state, he or she will have to quickly sell their house so they can move to a new area before their job begins.
The homeowner won’t have time to haggle or sit on the house until he finds the right buyer. Instead, he’ll want to get the sale over and done with so he can move on to his new life.
Additionally, if the person has already moved, it might be harder for him to meet in person and to be available in any way during the sale.
While these people might be hard to come by, if you do find one, make sure you take advantage of the opportunity.
Like this post? Stay tuned for Part 2 of The 10 Types Of Motivated Sellers, which you can check out on Friday, August 16th!