The 10 Types Of Motivated Sellers | Part 2
Want To Learn How To Invest In Real Estate? Make sure you know the types of motivated sellers to buy from.
If you want to learn how to invest in real estate, you should learn about what makes a good motivated seller. Motivated sellers are very different than typical homeowners trying to sell their property. Most people will try to get the best possible price for their home and are willing to wait a long time to make sure they get it.
For motivated sellers, on the other hand, time is of the essence. There is some sort of reason they need to unload the property fast, whether it is because they need cash fast, or they are losing money on the house the longer they hold onto it.
Motivated sellers are the more desirable of the two options for this reason. They can’t afford to play cat and mouse and they are usually willing to negotiate down to meet your needs.
The 10 Types Of Motivated Sellers #6-10
As a house flipper or wholesaler, knowing the different reasons a person can become a motivated seller is key to your success in this business.
In part one of this two-part series, we discussed landlords, heirs, homeowners under threat of foreclosure, banks who own REOs, and people who are transferring jobs.
Below, you can find five more types of motivated sellers.
6. A Person With A Recent Job Loss
When people lose their jobs unexpectedly, there are two things that usually can happen: they can pick up a lower income job as a temporary substitute, or they can wait until they find a comparable job to their old one.
In both cases, the person obviously won’t be making as much money as they previously did. Because of this, they might not be able to afford the mortgage or property taxes on the home they are living in.
Often times, what happens is the person must sell their house and purchase a less expensive one. They’ll want to sell the home fast, and are probably willing to negotiate down considerably.
7. A Couple Facing Divorce Or Separation
Divorce can be an ugly, nasty process. Much of the time you’ll find one partner and their lawyer battling against the other partner and their lawyer over dividing the different assets. The biggest of these assets is almost always the house.
Often times, the person who is rewarded the house will try to sell the house quickly before their significant other tries to renegotiate the assets.
In other instances, they will sell the house together and each party will receive half of the profit. When this happens, the couple might be disorganized and have little communication with one another.
In both cases, they will want to sell the house and get the process over with, and they’ll take whatever amount of money they can get.
8. A Family That Is Expecting A Baby
A pregnancy in a family can often mean one thing: time to move out of our little home and upgrade to something bigger. The clock is ticking, too. No more than nine months until a new member is added to the family and the parents need to find a house to raise him or her in before the time runs out.
During this time, the parents will be busy reading baby books, going to doctor’s appointments, and trying not to have a heart attack. Because of all this commotion, selling their old house often becomes peripheral. It just simply isn’t as important in the grand scheme of things.
If you find a situation like this, make sure you take advantage of the opportunity and try to buy the property for well under market value.
9. Seller Of A Differed Maintenance Property
Sometimes, when strapped for cash, homeowners will neglect their home maintenance in order to save money so that they can pay their mortgage, or other financial obligations.
When they do this, they essentially make their home into an unappealing property for future buyers. When they decide they want to sell, they’ll find that most personal buyers won’t want to buy the home, especially for the price it is listed at.
As a house flipper, however, it is your job to renovate and improve. And since you are probably one of a few, or even the sole person interested in the property, you can force the seller to cater to your demands.
10. Seller Of An Old Property That Needs Updating
Similar to differed maintenance is and old property. Both are particularly undesirable to most home buyers, leaving the seller with a problem. Make the seller feel as if you are his or her only way out, and give them an offer.
If you find an old property like this with good bones, you might think of purchasing it. Just be careful to make sure they’re aren’t any permanent structural damages. Always have an inspector check out homes like these before purchasing, or else you might be stuck with some major problems.