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4 Helpful Tips to Negotiate with Motivated Sellers

motivated seller leads

Property owners put their homes for sale for various reasons. Sometimes they move out of town for work, upgrade to a new home, or face foreclosure. While many homeowners list their property on the market and wait for the right buyer, a few homeowners are anxious to sell their homes quickly to manage challenging situations. These motivated seller leads present huge opportunities for real estate investors to make money. However, the success depends on how you approach and negotiate with the seller and close the deal.

Here are four helpful tips that can help you negotiate better with motivated sellers and close quickly.

1. Know Their Reason for Selling the House

Motivated sellers are usually desperate to move out of the house quickly. Knowing the reason for selling the home will give you an advantage while negotiating for the best price. You’ll have the power to determine the prices and terms. A motivated seller is likely to face issues like foreclosure, the price drop in property value, divorce, increase in property tax, relocation because of a job, an unsellable home, financial crisis, or vacant house. Get to know their motive behind selling the home and leverage it to make more.

2. Ask the Right Questions

Asking the right questions will help you understand their situation and why they want to sell their home. Questions like, “‘Why are you selling the home, when did you buy it, and what do you owe?” are crucial to ask a homeowner.

3. Know the Different Types of Motivated Sellers

The behavior of a motivated seller will vary depending on the driving factors that affect the decision-making. You may come across the following types of motivated sellers during the negotiation process.

The Desperate Seller: The property owner may have a major problem, and selling the home is the only option.

The Tricky Seller: The homeowner may have plenty of offers that may trick the investor into accepting the asking price quickly. You’ll need to negotiate patiently to get what you want.

The Savvy Seller: These owners will get offers from multiple buyers and go for the highest bid.

4. Know the Components of the Purchase Agreement

After understanding the seller’s condition, it’s time for you to make a compelling offer. Knowing the components of the purchase agreement will help you during the negotiation process. Following are the parts that you should know:

  • Down payment
  • Contingencies
  • Closing costs
  • Close of escrow date
  • Title company
  • Earnest money deposit

Just like knowing how to negotiate with the seller, it’s also essential to understand how to generate motivated home seller leads.  Follow and implement strategies that will create results or get an expert’s help to get seller leads in your area.