Acquiring Bargain Homes from Motivated Sellers
Most investment markets price investments efficiently, meaning that the price is set by the forces of supply and demand among buyers and sellers. The real estate market doesn’t always work that way, which creates opportunities for investors to find real bargains. Bargain properties are offered most often by motivated homeowner – people who are compelled to sell their property beneath market value for financial or personal reasons.
- Financially Motivated Sellers: Sellers who must sell their property to get cash in a hurry. Often, these sellers have suffered a financial calamity, such as a loss of a job that has rendered them not able to cover the costs required to own the property.
- Personally Motivated Sellers: Homeowners who have experienced an unfortunate personal event, such as the death of a family member or a divorce that has compelled them to sell.
How to Find Properties from Motivated Sellers
Often, homeowners or real estate agents include “motivated seller” wording in the advertisements they place for the property – a clear indicator that the seller will look at offers less than the property’s asking price. Other ways to reveal properties with motivated homeowners include:
- Local Networking: Talk to the residents of houses next to or near for sale properties that interest you. Often, neighbors will know why the homeowner is selling, which can help you evaluate how motivated they are to sell the property at a low price.
- Consulting Real Estate Agents: Visit a local real estate company and ask to talk with agents who have property listings owned by motivated sellers. Since the agent’s interest is always to sell the home as soon as possible, he or she will be happy to show you listings that could lead to a quick sale, even at a bargain price.
- Scanning Local Publications: Read the real estate or classified section of local magazines and newspapers. Look for properties that reside in the listings week after week. Often, these properties have motivated homeowners – just be sure to check out the property thoroughly to determine why no one else has bought the property yet. It may be languishing on the market for a good reason, such as a rough location, poor build quality, or a nearby construction project.
