Are you apprehensive about marketing to motivated sellers? Do you wonder whether people actually exist that are willing to sell their houses for dirt cheap without being forced?
Join the club. I think most of us have these doubts when we got started. It’s only natural because we’ve likely never been in a situation that would make us want to sell under market value.
The more marketing I did, the more it became clear that people were more than willing to happily sell their house for cheap. Amazingly, it was hardly ever because of a looming foreclosure.
In order to help people understand why sellers call investors to buy their houses, I’ve put together a list. This list is full of reasons and situations that people have that make them want to sell quickly and painlessly.
The list is broken up into two sections. The first are the ones related to situations where the seller didn’t ‘earn’ the equity. They didn’t pay on the house for 20 years and then need to sell. The second section contains negative situations that people end up in that cause them to be willing to give up some equity.
You could and should use this list to help in determining where to direct your marketing.
- Inherited the house and have no need for it
- Inherited the house and can’t afford it
- Inherited the house and are tired of taking care of it
- Won a lawsuit and bought the house
- Won the lottery and bought the house
- Payout from an insurance claim
- Divorce and got the house
- Parents bought the house for them
- Vandalized house
- Fire damage
- Flood damage
- Foundation problems
- Lead or asbestos problems
- Going into assisted living
- Death in the house – Stigma
- Death – Painful memories
- Drug addiction
- Tired landlord
- Don’t want to become landlords
- Skipping town
- Going to prison
- Medical bills
- Owe Taxes
- Can’t afford repairs
- Facing foreclosure
- Need money for new business
- Outgrown the house
- City condemned house
- Military relocation
- Job transfer
- Don’t trust Realtors
- Don’t know how to sell a house
- Unsuccessful Sale – Agent
- Unsuccessful Sale – FSBO
- Neighborhood on the decline
- Schools on the decline
- Sex offender nearby
- Gang problems
- Unsavory new development nearby
- Bad neighbors
- Disappearing waterfront
- Dried up well
- Change in airport flight patterns
How to Analyze a Real Estate Deal
Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.
This is by no means all of the situations and circumstances that cause people to sell for cheap. I’d like your help in coming up with more. If you have one that you could add, please mention it in the comments below. Let’s see how many we can get up to.
Also, let’s have a contest to get a 1,000 facebook likes on this article. Nothing’s impossible. If we’re going to go big, might as well go HUGE! Help us out, click the ‘like’ button.
Photo: Barbara Piancastelli