In any real estate deal, some sellers are more motivated than others.
There are three major types of sellers you should target when it comes to selling real estate. From property values to ease of sale, there are a variety of reasons why each one of these sellers is primed to offer you a great investment deal.
This real estate investing article will not only identify your three most motivated sellers but explain their willingness to accept a given offer as well.
Vacant properties are ideal for investors because their owners are typically desperate to sell and willing to take an offer of less than market value.
Whether the person selling the property is property manager of a home that was foreclosed upon or the homeowner himself, vacant properties are a financial drain to the owner.
This means that strategic investors can buy vacant properties in competitive areas for well below market value and flip them at a significant profit.
In other cases, vacant properties may be vacant because the owner began renovations he or she was unable to finish. In any case, vacant properties are often sold at a loss to the owner to avoid incurring any additional expense or debt.
The longer the owner holds onto the property, the more money is lost, so these sellers are highly motivated to accept all reasonable offers.
Understandably, vacant properties are highly sought after by wholesalers, but they present an intriguing investment opportunity for any type of real estate deal.
When someone dies without leaving behind a will or with a will that is unclear, the property must go into probate for distribution. Court proceedings can take months or even years to sort through a deceased person’s estate.
In many cases, the person who inherited the property has no wish to deal with the costs and responsibilities of keeping it.
Sellers of inherited properties are highly motivated to sell their properties since there is usually no significant emotional or financial attachment to the property. These sellers have not invested time and money into the property, so they are more likely to accept an offer and have someone else take it off their hands before they are forced to deal with repairs and taxes.
The key to winning a probate property is to get to the sellers before they contact real estate agents to list their properties on the market. Making an offer at this early stage of the court process is more likely to result in acceptance. In many cases, these properties are in ideal condition and make quick-and-easy wholesales, but others may appeal to the rehab property flipper who desires a more dramatic profit.
Property owners who had to kick out a previous tenant, or whose tenants abandoned the property without fulfilling their lease, are highly motivated to sell. Whatever the terms of the eviction, the landlord is stuck with a property that is not generating any rental income. This means that he or she is significantly more likely to accept an offer that will leave the property in someone else’s hands.
Before you put in the effort to make an offer on a property, it is in your best interest to determine how open a given seller is to accept your offer. The “OPEN” acronym is a helpful way to determine which sellers are likely to respond positively to your offer.
“O” stands for an owner who is Oblivious to the selling process. This seller has never seriously considered selling and isn’t likely to give much thought to your offer.
“P” stands for someone who is Pondering the idea of selling but not likely ready to accept an offer anytime soon.
“E” stands for an owner who is Engaged in the selling process and has conducted some research, but who is still looking to sell at a competitive price and has no reason to take a lower offer.
“N” stands for sellers who Need to sell a property immediately, whether because of an eviction or because of tenants who have abandoned the property. Need-based sellers are more likely to accept a lower offer because holding onto the property means a financial loss.
By understanding the three types of sellers who are most likely to accept your offer and putting the “OPEN” acronym to use, you can tailor your marketing strategies even further. A well-tailored real estate investment campaign makes it possible to spend less money on advertising since you will be targeting only those sellers who are most likely to accept your offer.
In many cases, putting your marketing materials out there is all it takes to generate interest from a property owner who desperately needs to unload a house or condo that has become a financial drain.
Armed with this solid real estate investing knowledge, you can move forward with more strategic offers.
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