Wondering how to spot a motivated seller? You are not alone. Hundreds of real estate investors are seeking a concrete answer to this question. Motivated sellers have an extremely strong inclination for selling a home due to personal reasons. Though it may sound slightly nefarious, it is your job to unearth the reason for which the seller quickly wants his house off the block. In this blog post, I suggest some quick Tips and Tricks which will help you spot a motivated seller.
In a bid to sell the house early, a motivated seller often disregards the advice of his real estate broker. It is often seen that such sellers price their house lower than the price arrived at in the Comparative Market Analysis (CMA). A Comparative Market Analysis is an analytical way of determining the house’s value by considering historical selling prices and the state of the local economy.
If a home is co-owned by a couple, and the seller has recently gone through a divorce, chances are that the seller will be unable to meet his/her mortgage commitments. In the event of a divorce, the man/woman has the option of buying out his/her ex’s equity in the property. However, more often than not, the seller does not the financial capability to do so. And, co-owning a home after a divorce is extremely rare as it would be emotionally traumatic for exes to do so. So, if the seller has gone through a divorce, they would be highly motivated to cash out and probably downsize their accommodation.
Is the house that you are planning on buying extremely overcrowded? Is there a cot in the living room? Or, maybe children staying in the guest room? This means that the house is too small for the family. And they have no alternative but to move to a larger house.
Are there aged people staying in the house? Do you see outdated photos from 30 years back hanging on the walls? This means that the occupants of the house have moved out, and that house is too big for the elderly folks staying there. It is likely that you sellers are willing to give you good concessions in this instance.
However, a word of caution here. Such a property is likely to be poorly maintained. And you might have to spend significantly towards remodeling expenses. We recommend going for a thorough home inspection before purchasing such a property.
If your seller is unfortunate enough to be in dire financial straits, chances are high that you will be able to eke out a great bargain. There are some sure shot signs which will tell you if the seller is short of money. Firstly, look at the condition of the property. Is the paint peeling off the walls? Is the yard crawling with weeds? Is the furniture creaky and worn out? It is possible that the seller is unable to meet his financial obligations and wants to get rid of the property as quickly as possible.
How your seller reacts to a lowball offer is another indication of a highly motivated seller. If the seller responds to your lowball offer with a counter offer, this is a sign that the seller is desperately considering all offers. Remember – do not cave in yet. Keep negotiations open by responding to your seller’s offer with another counter offer.
This could mean either of the two things – either the seller is quoting too high a price. Or, it could be that the property is not selling due to one or all of the following factors – poor maintenance, a cold real estate market and/or title issues. If it is the latter, your chances of encountering a motivated seller are high. Has the seller reduced the price recently? This is another indication that the seller is fed up and is willing to provide concessions to get rid of the property.
There are various advertising tools that you can use for locating motivated sellers. Facebook Ads is the go to tool for many folks wanting to get in touch with motivated sellers. Though advertising norms have become stricter in the aftermath of the Cambridge Analytica scandal, Facebook Ads can still yield you some great results. There are three critical components to a Facebook Ads – the image, the copy and a call to action. Make sure you use an image that arouses curiosity. Remember – the purpose of an image is to encourage folks to click on your ad. A compelling copy is equally important. If you do not have good copy writing skills, you can hire a good copywriter via Upwork or Fiverr. Remember to clearly define your requirements while hiring someone. Or you might end up with a shoddy product. Finally, sign off with a strong call to action. The purpose of your Facebook Ad is to drive folks to your website and encourage them to get in touch with you. We strongly recommend using video testimonials to further engagement.
Using Bandit signs is also a good idea. Creative messaging will ensure that you stand out from the crowd. Experimenting with design and color is also a good idea. Make sure that your contact information is clearly displayed.
A Direct Mail Campaign is a tried and tested method that yields results if executed in the correct manner. In order to kick start a direct mail campaign, you need a list of verified leads. This is critical. If you have a shabby mailing list, this will be a poor use of your marketing dollars. Secondly, your message should be carefully crafted. Use a compelling headline. Your copy should be cleverly written. Wrap up your message with a strong call to action.