Do you want to expand your real estate portfolio? Are you interested in finding a sweet deal and snagging a solid location for less money? It starts with understanding how to find motivated sellers and which tools can help you identify and contact the right property owners. In this blog we’ll explore how to find them and begin negotiations
What is a motivated seller?
Motivated sellers are eager to sell their property. Their eagerness is often influenced by significant life changes such as bankruptcy, divorce, or loss. They often need to release their mortgage obligations with few issues, so they drop prices, accept lower offers, or ask for quick closing dates.
How to find motivated sellers
Locating these sellers can feel like looking for a needle in a haystack. However, the field narrows, and chances increase if you know where to look. Motivated sellers generally want to get rid of property for a few specific reasons. They often struggle to maintain them, need to pay off existing debt, or reduce their monthly expenditures.
There are a few specific databases and sources that can help you identify motivated sellers. Start with notices for foreclosure, estate sales, and bankruptcy. Create a list of potential properties and assess their viability.
Use online lead generation software to complete a nationwide search of potential sales. Look for keywords that signal a motivated seller. These owners usually use terms such as “cash only offer,” “as is,” or “all offers welcome.”
Make acquaintances with bankruptcy and real estate attorneys. These professionals could deliver prospective sales straight to you, helping you and their customers.
Advertise within the community. Put up signs noting you buy houses of any condition. Provide a contact number.
Don’t skip the local auctions. These homes may take some work, but lenders and tax collectors own them and they often sell for less than market value. If you can buy low, you’ll have room to renovate and make a profit.
Why motivated sellers are important in real estate
For real estate investors, motivated sellers are a critical component of the real estate ecoysystem. An investor’s goal is to spend as little as possible to earn a return on investment, and finding motivated sellers is one of the fastest paths to profit.
Motivated owners allow you to flip houses and build your portfolio without carrying too much overhead. These lower mortgage costs allow you to add upgrades that will entice buyers, leave wiggle room for delays in repairs or finding renters, or resell for more profit.
These transactions happen quickly with little haggling, making it lucrative for investors interested in making a profit sooner.
How to negotiate with motivated sellers
While many homeowners want to wait for the perfect deal, motivated sellers don’t have time to wast. During your negotiations, focus on their dilemma and provide an offer that alleviates their obligations while benefiting you, too.
Concentrate on fast options with few obligations. If possible, agree to pay in cash to expedite proceedings and avoid lender approvals and delays. Cover the closing costs and offer lease and rent back options.
In addition, these owners don’t have the time or money to fix anything. They want to get out without hassle. Don’t ask for changes or repairs. Take it in the current condition, and factor repair costs into your offer.
Motivated sellers offer a great deal of value to real estate investors. While their properties may require work, they come at lower prices, allowing for swift deals, more significant profit, and a quicker return on investment.