Not too long ago, I blogged about an investment property that no one wanted, but I saw an opportunity and was able to purchase the property at a discount. Although the situation was a little different, the potential for obtaining a deeply discounted property is the same when dealing with motivated sellers.
So, what makes a person a motivated seller? There are a few circumstances that scream “Motivated Seller”. Is the property on the market because of divorce? Is the property currently in an estate due to the death of the owner? Is the property in foreclosure? These are situations that let you know that the seller may want to get rid of the property fast, and possibly for a lower price.
If the property has been put up for sale because of a divorce, this is generally a good sign that the seller is willing to negotiate. Many times a divorce may be bitter and neither party really wants to keep the property. They may be willing to let it go for a lower sales price. This is the perfect opportunity to catch a good deal.
If the property is in an estate, the children are usually the inheritors. More often than not, the children have no stock in the property. They’re not looking to live in it and are not willing to pay for the upkeep of the property. They may also be willing to let the property go for a lesser amount. Many times in this situation, the house is paid off so the estate can accept a much lower sales price.
Now if the property is in foreclosure, this may be the best opportunity of the three. The bank doesn’t want to seize the property. They would rather take a lesser amount than what is owed, than take the property. They will be very willing to negotiate the asking price to secure a sale. Take advantage of this situation knowing the seller cannot keep the house and the bank doesn’t want it. You are the only one who is really interested in acquiring the property.
So clearly, there are personal situations out there that can help you get a reduced price on a prospective property. Don’t think for a moment that you are taking advantage of someone’s bad situation. In this scenario both parties get something from the transaction. The seller gets rid of the property they don’t want to own, and you as the investor get a great piece of real estate at a discount. Keep your eyes open for motivated sellers and take advantage of these deals whenever possible.
A good real estate agent can help you find motivated sellers. Check out this video on finding the best real estate agent to support your business: