WHAT IS A MOTIVATED SELLER?
A motivated seller is exactly what it sounds like. It’s someone who has a reason to sell something as soon as possible. While this term is most commonly associated with real estate, anyone selling anything can be a ‘motivated seller’.
WHY IS SOMEONE A MOTIVATED SELLER?
There may be several reasons why someone is anxious to sell something. Some common reasons when it comes to buying a home may include:
- Financial situation – (loss of job, divorce, etc.)
- Life change (relocation, downsizing, etc.)
- Property issues (problems with house, nearby development, etc)
Make sure that you complete your due diligence to ensure that you’re getting a good deal. This includes a home inspection and a city planning report.
HOW SHOULD YOU HANDLE A MOTIVATED SELLER?
Let the seller lead the negotiations. While most sellers have a firm asking price in mind that they won't budge from. With a motivated seller, you may be able get a lower price, but you don't want to lowball right off the bat. If you are able, offer additional incentives if there's the potential for some competition. Going into a negotiation with a letter of pre-approval may help speed up the process when it comes to making an offer. If the owner knows you’re serious, they’re more likely to accept initial offers. Don’t let yourself get caught up in bidding war that may put you over your predetermined budget.