For a plethora of reasons, getting sellers to bite on aggressive offers is becoming exceedingly challenging these days. If the investors are clueless about the things that motivate the sellers, getting their offers accepted becomes nearly impossible.
In most cases, sellers have unrealistic beliefs and outrageous standards, and these are the things that investors need to hurdle with in order to succeed.
Knowing the 5 ingredients of a highly motivated seller is a crucial step in achieving the ideal purchase agreement. Investors need to get inside the minds of the sellers, and through these 5 ingredients, they can subtly, yet strategically dictate the pace of the negotiation to their favor.
Whether it’s a house, a condominium property, or simply a bare lot, the name of the game is to tap into the things that make the sellers “tick”. This is a powerful springboard that Investors can use to be successful in this industry.
These are the 5 ingredients of a highly motivated seller:
Sellers are pushed by the stress of not having enough to get by. The reasons vary – financial hardship, job loss, divorce, or anything that requires a huge expense in repairs. Any one of these instances can cause a seller to be extra motivated to sell his property.
Whenever there is something in the property that needs repairing, owners would rather dispose property by selling it outright. They are more susceptible to accepting lower offers due to postponed maintenance in the roof, walls, windows, or any part of the property.
Another angle to this second ingredient is when the property becomes the source of complaints from neighbors and the authorities. Any aspect of the property that poses some kind of hazard or danger will provide inconvenience to the owner. This can ultimately make him want to sell his property instead.
Multiple price reductions
When properties are put up for sale, some sellers become too optimistic and place outrageous selling prices. Or, banks who foreclose properties want to get rid of these properties the soonest time, since they are not really built to keep the properties.
It is important here to hold your initial offer, so the agreed price goes down multiple times to your desired level.
High CDOM/DOM (Days On Market)
Sellers want to get rid of their properties ASAP, and they start to worry if their properties do not get sold in 90 days. Thus, at this time, they are more than willing to take much cheaper offers just to cut these properties loose.
Life occurrences affect a seller’s motivation level. It could be a job transfer, a new family member, or perhaps a death in the family etc… These events can help push the owners to sell their properties for financial and emotional reasons. Maintaining these properties will only be a challenge for them since they have a lot of things in their life that they need to contend with. Hence, they tend to just want to sell their properties to interested buyers.
These 5 ingredients can aid in strengthening an investor’s battle plan in securing properties with their ideal offers. So if you’re having a hard time finding great deals, then you ought to look out for these 5 ingredients now.