March 13, 2013 in Investing In Real Estate
Most real estate investors have a hard time making low ball offers to sellers especially in the beginning. In fact, most investors start out believing that none of their low ball offers will ever get accepted. I know I did especially in the beginning. The first time someone just said “OK” to my low offer I was shocked; and then I got it. The seller understood why I was making that type of offer. I have found many times over the years that even though sellers say that they want or expect “$XXX”, they know deep down they aren’t going to get it.
There is a natural tendency for real estate investors to feel bad for the sellers because of their current situation. In turn we feel bad about our offer and the fact it is so low even though we know it is the right offer. Then there are those folks that proclaim that we are an “unethical bunch that takes advantage of folks that are down and out” when actually nothing is further from the truth.
Most newbie real estate investors make those first offers filled with a whole lot of doubt, fear and a complete lack of confidence. So how do you get over that? You need to understand what a true motivated seller is.
A True Motivated Seller
A true motivated seller has a burning desire to get rid of a property. They don’t just want to sell, they “must sell” to alleviate whatever painful situation they happen to be in. You know that people typically make decisions based on the pain their actions will alleviate or the pleasure they will gain from those actions. Motivated sellers just want out so badly they are relieved to be rid of whatever problem is keeping them up at night. Once they accept your offer they know their pain will go away.
What Are Some Reasons A Seller Would Be Super Motivated?
There are many reasons they could become motivated. Here are just a few of them:
-A situation where they have two houses and cannot make the payments.
-A job transfer or a job loss
-A divorce where they are forced to liquidate the property
-A death or inheritance
-A tired landlord that just wants out
-A house that needs a ton of work they can’t afford to do or just don’t want to do.
You can bet these folks are having a lot of sleepless nights. They may have double house payments, they may be facing foreclosure, or they may be so stressed financially that they are facing bankruptcy. They just want a solution to their pain.
In every one of these cases, you will be there to provide immediate relief if you can solve their problem. They will be able to breathe once again and won’t be filled with constant worry. I cannot tell you how many times a seller has given me a big hug at the closing then thanked me solving their problem and for being so nice to them. I can tell you that is a great feeling.