Published on September 30th, 2021 | by Sunit Nandi0
How Can You Negotiate and Deal with Motivated Home Seller Leads
The seller’s motivation is of paramount importance in all real estate deals. People sell their homes for various reasons. A motivated seller is an individual who is interested in selling their home fast.
In most scenarios, motivated home seller leads can help you get a property at a price that’s 10% to 30% than its market value. However, the chances of profit and striking a deal depend on your negotiation skills.
Before negotiation with a motivated seller, you need to find the answer to the following questions.
- What will be the current market value and its market value after repairs? You need to run your calculations to establish the actual value.
- What is the mortgage balance? Find out the tax liens and junior mortgages
- Is the property in the last stage of foreclosure? In some states, you don’t have much time to strike a deal if the property is in the last stage of foreclosure.
- How much will it cost you to repair it completely?
- Is the property vacant?
- How much is the seller asking for?
After finding answers to the above six questions, you can determine whether the deal is good or not. A good deal is the one that allows you to make a good profit.
Some deals may not leave you with any room to make a good profit, and it would be wise to stay away from them. However, when you invest in getting motivated home seller leads, there is always room for you to make a neat profit on the deal.
Follow a Script When Talking to Sellers
Instead of going for lengthy questions and answers sessions, you need to decide on pre-screening questions to initiate a conversation with the seller. There are several eBooks and Internet sources that can guide you on how to talk to motivated sellers. Here are some questions you need to ask the seller
- When did you buy your home?
- Why are you selling it?
- When do you need to sell by?
- What do you owe on the property?
Understand What They Want
Be respectful when listening to motivated sellers. Such simple manners can help gain the trust of the seller and build a good rapport with them. How you behave and carry yourself in front of them will determine whether they will make it easy or hard for you to purchase the property.
It would help if you had positive personal qualities and come off trustworthy, as sellers are more comfortable dealing with people they feel they can trust. You need to step in the seller’s shoes and craft a financially beneficial deal for both parties.
When you provide a sense of certainty and speed, the seller may even be willing to lower the price. It is one of the most successful ways of negotiating where the buyer omits traditional contingencies like property inspections, appraisals, and financing.
You must also ensure that you meet their expectations. Most sellers decide to sell to cash buyers because they want to avoid banks, commissions, repairs, and other expenses. If your buying process includes any of these, they are more likely to back out in favor of a better offer.
Know Your Options
To make an irresistible offer to a motivated seller, you must know about the components of the real estate agreements.
- Earnest Money Deposit
- Purchase price
- Down payment
- Contingencies cost
- Closing costs
- Real estate attorney selection
You need to assess the facts on hand and provide an acceptable solution to the seller and get the property off his hands. For instance, if the asking price is unacceptable, try to explain it to the seller and negotiate a better deal. If the seller does not budge, you may be better off looking at other homes.