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Posted over 9 years ago

Quick Tips on How You Know If Your Seller is “Motivated”

As investors and wholesalers we are trained to look for motivated sellers.  We are looking for the owner that has to sell, not just wants to sell.  How can we tell the difference?Below are some quick pointers to make things a little easier.

Why it’s important to qualify the seller:

If are buying for all cash you need to know if the seller has a large mortgage.  If you’re using a MAO formula and they have no equity in the house they would have to come to closing with a large check.  Few if any motivated sellers are sitting on a pile of cash.  It will do you no good to drive out to a property, and build rapport, only to find out that the mortgage balance is more than you are willing to pay.  This is why it’s important to get all necessary information BEFORE setting an appointment.

I love to buy houses on terms and I don’t go the bank for a loan.  The problem is most sellers want to sell outright and be done with it.  After all, they’re not real estate investors; they don’t know about the time value of money and the benefits that can be had by offering financing.  If they don’t have a strong need and desire to sell they are far less likely to agree to terms.

How do I know if the seller is “motivated”?

I listen closely to the types of words that they use.  I perk up when I hear things like: “I just want to get rid of it”, “I NEED to sell, fast, now, today, ASAP!”, “get it off my hands”, “be done with it”, “don’t want to be bothered with it”, “can’t afford it”.  I’m moving away”.  “I’m sick of being a landlord”.  I listen for negative emotions like frustration and anxiety.

What does a non-motivated seller sound like?

Some overpriced sellers feel that they are going to show us professionals how it’s done!  They’ll call every We Buy Houses advertisement they see and demonstrate their negotiating skills.  I get many calls from owners who say things like: “I’ll sell it for the right price”, “I just want to see what I can get for it”, “I’m in no hurry to sell”, “I’m looking for a good price”, “It will be the right house for the right person”, and my all-time favorite: “The ad says you buy houses SO?!”  Most of these calls are a waste of time and I either refer them to a realtor or just get off the phone.

Try not to get angry when these sellers call you.  We all sell properties and contracts and we need to make as much profit as we can.

You’re the customer!

I like to explain to the seller that the person who walks into the store with money is the customer.  If they want me to pay them money for their house then that makes me the customer.  If I don’t like what I hear or if I am being given an attitude I’ll take my money elsewhere.  Never let sellers dictate terms to you!



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