Let’s spend a few minutes talking about types of sellers….
There are multiple types of sellers but you can pretty much break them down into two types of categories: motivated and unmotivated. Now while it may not seem like a big deal trying to figure out if they are motivated or not, but what makes a property lead most valuable is finding a seller who is really motivated.
When we say motivated, what are we kind of talking about here? Well trying to determine a motivated seller is based upon whether this seller has a compelling reason(s) to sell their property and a specific time frame in which the property has to be handled by (or sold by). I hear all the time, “Well, I’m selling because I’m moving,” This reason is very vague and doesn’t give you the compelling reason they need to sell or when they need to sell by. So the first question to ask yourself is: Do they have a compelling reason to sell? The second question to ask yourself: Do they have a specific time frame in which the property has to be handled by? If the answer is “No” to both questions then you probably have an unmotivated seller.
When it comes to motivated sellers, there are seven different reasons that can make a person a motivated seller:
- Having difficulty making their mortgage payments. Everybody has a bad stroke of luck from one point or another in their life (i.e. they lose their job). It’s unfortunate but definitely a reality and being able to unload their property is a better alternative then going into foreclosure and ruining their credit.
- They’ve inherited a property they don’t want or can’t afford. While this may send like a great thing at first, people don’t always inherit homes that are paid off. Even if it is paid off, sometimes, they just don’t want to deal with the hassle of renting it out, having tenants, or making repairs. It may even be a property that a family member left that is in a different state. That’s a big hassle and a big stress that they just don’t want to deal with. It can also be a emotional ties to the property that they just can’t handle dealing with.
- They’ve recently divorced and want to sell. No one gets married with the intention of divorcing but things happen and when people get divorced that’s another situation where there are emotional ties which is very painful to them and they feel much more comfortable selling the property. Maybe they just want to be done with it but don’t want to deal with putting the property on the market, showing the property to many potentially buyers, waiting months, making repairs, etc. They just want it to be handled quickly and quietly.
- They are moving and need to sell their house fast. The keyword is F-A-S-T. They really need to move quickly. I’ve met with sellers in the past where maybe they got a job promotion and it was a great opportunity and there was nothing that was going to get in their way but they had to have the property handled. It would be a terrible situation if someone had to pass up an opportunity, where they were working really hard for, because they couldn’t sell their home. Most people can’t afford to hold two mortgages and frankly they shouldn’t have to. Sometimes it could be a better opportunity out of town in a different state. The motivation is they are in a time crunch and have a specific timeline/deadline in which they need to have the property handled. This can be a really big problem for them.
- Their house simply won’t sell. Nowadays, most of the housing markets are really slow and houses simply won’t sell. Sellers are having to wait 5, 6, 7 months or more until they can sell their house the traditional way and the market just makes it virtually impossible to get their house sold no matter how bad they want to sell their home, no matter how nice their home is, and what location it’s in. So when people simply can not get their house sold and they want and/or have to sell it for very specific reasons; this makes them very flexible and motivated to work out the best deals and we work with them to find a way that will satisfy their needs and works for us and we try to find a middle ground. We step in and help out those types of sellers in this situation.
- They are tired landlords. Landlords…oh my goodness. If you have ever been a landlord, you know how difficult it can be. There are times when you have a tenant where you never hear from them. They send their check in, you open your mailbox and great…there’s a check. And there are tenants where you would think aliens abducted them because they vanished off the planet in the middle of the night, not even leaving the keys behind. Then you have everything in between. You have the tenants where they call you all the time for every little thing, their imaginary friend won’t stop bothering them (yes…this has happened), they can hear the termites eating out the wood, and find all these things wrong with the property even though it’s in good condition. Sometimes people buy houses and think the thing to do is be a landlord not having a clue as to what they are getting into, only to be burned out in the end. On occasion, there are times when landlords just don’t want to deal with their properties because they could be moving away from the area or getting into bigger and better things. They are highly motivated whether the reason be bigger and better things or just doom and gloom. It’s a great service we’re able to provide to people because we handle it quickly allowing them to move on in with their life.
- They own a vacant home. Vacant homes could be the result of inheriting the property or simply a rental property that just kept getting run down and run down and they didn’t have the money to fix it, letting it go and never doing anything with it. Anytime you see vacant homes boarded up, those properties have owners and no one wants to own a vacant home. That’s not bringing in any income or building any equity. Chances are they want to get rid of the house and get some cash for it.
- They have medical problems or health issues. Sometimes bad things happen to good people. There are all kinds of diseases or health issues popping up just as fast as the cures and treatments are being created. This causes medical bills to pile up and stress and more health issues to happen. Sometimes it could be a disability where their house doesn’t provide the necessary resources to function in life as it did before. They don’t want to deal with even more stress of trying to sell their property, having to show people all the time, or making repairs. Moving into a smaller or different type of property, whatever the case may be, they just need to get rid of this property. Being able to have some type of solution to their problem without having to go through so much of the heartache is really ideal for them.