A highly motivated seller can be a real estate investors dream come true. A motivated seller is a property owner that wants to sell the property and is willing to negotiate on some points to find a buyer. Some reasons a seller may be motivated could include the market in that area being a buyers market, with a large inventory of properties for sale, or the property may have sat on the market for months without much interest from buyers. Another reason for a seller to be motivated could be legal problems or inheritance issues. Whatever the motivation is does not matter. The important thing is that the seller is motivated and may take a lesser price, or be more flexible in the terms of the sale.
There are many reasons why a motivated seller is a good thing for the real estate investor. One of these is the negotiation flexibility. You can get a lower asking price because the seller wants to close the deal. It is also possible to negotiate for no money down, less points, a lower interest rate or monthly payments, or even to negotiate for needed repairs or renovations to be done before the transaction.
As a real estate investor, any one of these options could save you a lot of money and give you a bigger profit and investment return in the future.
Dealing with a motivated seller can mean more negotiations and a longer purchase time because of this. As a real estate investor, it is important to know exactly what you want out of the deal, so you can negotiate and get these terms. It is very important that you learn how to negotiate, and when to accept the terms because the seller will not go any farther. With a motivated seller there is a higher return potential for the real estate investor, but it may be a longer term investment before the profit is realized if it is not rental property. This is especially true if there are a large number of houses for sale and the market is flooded. In this case you may have to do some home improvement or renovations to increase the resell value of your real estate investment.
Whenever you are dealing with a motivated seller, be aware of what terms are ironclad and what terms you are willing to give some. Use this when negotiating, and always understand that the seller still wants a fair price, so make sure you have pointed out all of the advantages of the deal to the sellers. By finding motivated sellers when investing in real estate, you will maximize your profit, and minimize your costs. Motivated sellers want to make a deal, and it is up to you to make the deal one that is a profitable investment for you.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
