Why are they selling?

8 Replies

I’m not sure if it’s just me but when the time comes to buy a property, I always think “Well, if it’s that great why would they sell it.” I always, always have a thought along those lines and I was wondering if you guys have felt the same way or how to get over it. (I know it sounds odd, but I’m sure it’s not just me!)

Various reasons. People's situations change. They get married, have kids, need to move to a place with good school for the kids, downgrade because the kids have moved out. People gets relocated for work. Get fired, etc.
Etc.
It never hurts to ask the broker why the seller is selling. But there is a whole hosts of valid reasons.

I always hated that question as a broker and would just say no clue.. as it does not matter.

under stand the inquisitiveness of it.. but to me it screams rookie buyer..

For the same reason you put your old Schwinn bike up on Craigslist for sale on the cheap.  Because it just doesn't have that value to you anymore and it's more important for you to get rid of it now then have it take up space in your garage for the next year while you wait for top dollar.

Don't throw away a Schwinn-Schwinn situation... sorry I had to :)

I think its a valid question but you are asking with the wrong intuition. Why are they selling may help you create better win win that could get you a better deal. Their selling may not mean anything is untoward just that their situation has changed and they want something new or to get out of what they have, they could have run into financial trouble, gotten tired of being owners or want to deploy their capital in a better market. The only way to find out is by asking and being open to what they say and what they don't say.

People have a lot of reasons to sell . The thing is are they going to tell you the actual reason ?

I see a lot of businesses for sale and most of them sale “owner illness” I often wonder if that’s the real reason .

No longer needing it. Cash out while prices stay high.

@Sam Shueh True. This is as good as it gets if ones wants to sell their home quick especially in CA.

I sold my home in a less desirable part of L.A last year and it went until contract in less than a week
Multiple offers

When I bought in 2010 it sat on the market multiple months .

That is a good question for stocks, but houses are different. Maybe not duplexes...if it cashflows and CDs are still below 2% you’ve got to wonder.

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