Finding Motivated Sellers is Easy

Motivated sellers are key to real estate investing. The importance of finding motivated sellers is key in every successful real estate venture whether as an individual or a team. Selling investment properties isn't as hard as you might think.

Naturally it would be ideal to simply find that seller who just wants to get rid of her property no matter what. They want it sold as fast as possible. But sellers all have different motivations and once you find out what those are it will make the negotiation of a purchase that much smoother and mutually beneficial.

In some respects a seller is motivated the moment they put up a for sale sign. However, some will wait as long as it takes to get what they are asking for. And if they have the time to wait for what they want then they will more than likely be stubborn, not mention stingy negotiators. The most important first question to find out is why the seller is selling their property in the first place.  Why does she want to sell a particular way, for example, why does he want the price he is asking, and what's important to him in making decisions?

Secondly, watch for personal motivators that are a part of his or her personality as well.  Note whether the seller is more motivated by what she reads or what she hears. Does he seem more motivated by the promise of a fast sale, or a high price?  Listen to what sellers say for clues. This will allow you to quickly decide whether this is a property to be spending your valuable time on, or whether you should walk away and find a more motivated seller that may give you what you want..

Creating More Motivated Sellers

Start gathering information on the seller's motivations early in your real estate transactions, then decide how to use this information.  How do you use it? See how they react. For example, if you hear "I really don't want any problems - I'm looking for a smooth sale" or "I'm just ready to move on", these are classic motivated seller answers. They are ready to move, perhaps have been waiting a long time, and in some case may even be that person above who was willing to wait to get the right price but is exhausted and wants to be done with the property. That is a perfect opportunity for a mutually beneficial negotiation.

When you access a seller's motivations, you make that person into a more motivated seller because you start to get into their mind and can respond in kind to their needs.  You should begin by doing this verbally or in writing depending on the particular tendency of your seller. For example, if they say "I understand" many times, then you can respond by saying "I think you understand why because…" Hearing their words coming from you will help them see the deal more clearly.

It is also a benefit to you to find out some more specific things that may be motivating your borrower. For example, some sellers may just want to be able to tell his neighbor he got the price he asked for. Great - then you could give him the price, but hammer him on every other aspect of the negotiation, making him bring things to the table. You get what you want and he can brag about the price acquired.

The best way to meet a motivated seller is to get in their minds, negotiate according to their motivations and bring in your offer with that in mind.  Everyone likes a win-win scenario not only in real estate but in life.  Once you and your investment team master the art of identifying motivated sellers, you will then know how to make all sellers into motivated sellers.