If you’re looking to buy an investment property and want a deal, you may be wondering how to find motivated sellers in real estate. We recommend focusing on nice homes in a nice area over searching for a motivated seller. You want to offer people a home that they would want to own. That means you’re looking for a nice home in a nice area. This will attract good tenants and help get you the monthly cash flow all investors should be looking for. However, it’s still important to be able to recognize a motivated seller when you see one.
A motivated seller is willing to negotiate. They often can’t move forward with their plans without selling their property. This makes them more willing to work with buyers to come to a deal that benefits both parties.
This can go a long way to help boost cash flow, which is important when investing in real estate.
They are on a mission. They know where they want to go, and they’re invested in getting there.
When sellers say things like, “We don’t need to sell,” or “If it sells, it sells,” they’re likely firm on their price, aiming to get as much money as possible rather than just selling the house.
That means the house is priced realistically, or even below fair market value. While this may be a good sign of a motivated seller, it doesn’t always work in your favour. This could lead to bidding wars, something you don’t want to be in.
Bidding wars are for people emotionally invested in a property. Don’t get emotionally attached to any property. This is an investment. You want to look for a property that can provide you with monthly cash flow. Work with a real estate investing coach to figure out how much you’ll need to get a house for in order to keep that positive cash flow. This way you know your walk-away price, and you won’t get swept away in a bidding war.
Not cleaning or staging a home is a good indicator that the seller isn’t serious about getting their home sold.
Someone who requests 48 hours' notice, or other stipulations, making it difficult to show the house is less motivated. A motivated seller wants to make it as easy as possible for people to know their house is for sale and so they can view it.
Did they get a job in a different city? Did the owner die or move into a retirement/nursing home? Are they separating/getting divorced? These are all reasons someone may want to sell quickly.
The longer the house is sitting empty, the more money the seller is paying in monthly bills.
It’s inconvenient owning a vacant home. Just because you don’t live there doesn’t mean the lawn stops needing cutting, or the driveway/sidewalk can go unshoveled.
There is also a higher risk of vandalism with a vacant home. Selling the property gives a seller peace of mind and relieves them of a lot of responsibilities.
They may not have been motivated when they first listed, but if the property has sat on the market for a while, the homeowner’s attitude often changes, and they may now be ready to unload the property.
If they’ve dropped the price that’s another indicator that reality is sinking in and they’re becoming more motivated to sell.
There is a better chance a homeowner has paid off their home, or built up considerable equity in their home if they’ve owned the house for 10+ years. This means they may have more wiggle room when it comes to a closing price.
