Seeing “motivated seller” on a listing can seem very beneficial to a buyer. However, you need understand exactly what kind of motivated seller you are working with. Listed below are four different types of motivated sellers to understand – doing so can help ensure that you get the home you want for the right price.
The Desperate Seller
Your motivated seller may actually be desperate to sell their home. This could be because of divorce, relocation, or other reasons. Whatever this reason is a desperate seller can mean good things for you because some realtors will recommend that you offer 30-35% below market value. Translation: you could get a great house for a great price.
The Too Good to be True
If you think the home and it’s price seem to good to be true then it probably is. The seller may be trying to sell the home because there is something wrong with the home or an underlying issue with the neighborhood. Make sure you do your research before purchasing the home and ask questions to the homeowner and the people around about the neighborhood. Also get a home inspection to make sure the home is safe and you are not getting in over your head.
The Tricky Deal
Some sellers may want you and multiple others to think that their home is a steal to create a bidding war on their home which will increase it’s price. If this is the case there are a few things you can do to help ensure that you get the house. You will want to get a mortgage preapproval letter and not a prequalification letter. Also make an offer on the home which does not have any stipulations. To appeal to the seller’s emotions think about writing a letter saying how much you love the home and what great owners you will be.
The Regular Seller
Some sellers may try to make you believe that they are highly motivated to sell their home but in reality they are highly motivated to sell their home at the price they have it listed at. In this case the best recommendation is to make an offer at market value or listing price without any stipulations (ie: they pay for closing costs or having a longer closing period). This will help ensure that you get the home.
Understanding the type of motivated seller you are working with can be very crucial when looking at homes as this insight will help you decide what kind of offer you should make or whether to walk away.