Encountering the opportunity to purchase a house from a motivated seller can be a powerful business opportunity. Situations like this don’t just appear by force of luck. Having access to the right leads is crucial for setting up this opportunity.
The advantages of motivated seller leads should never be ignored by anyone looking to purchase a house. Suppose you’ve never had the opportunity to reap the rewards or advantages of motivated seller leads. In that case, the experiences of previous investors that took advantage of these leads can tell you everything you need to know.
It helps to gain some background knowledge in motivated seller’s leads before starting the investment process. You can even grow your real estate business upto 25x if you have a bunch of motivated seller leads ready in your list. We’ve compiled some of the more fundamental elements and benefits of motivated seller leads.
DEFINITION OF A MOTIVATED SELLER
A motivated seller transforms the want or desire to sell a house into the need to sell a house. The sense of urgency is substantially higher in the case of a motivated seller. This urgency can be triggered by several factors.
- Trouble with mortgage payments caused by a financial crisis
- A new home -purchase was closed faster than initially expected
- The previous owners suffered through a divorce
- Forced to relocate because of a new career opportunity
There are other possible scenarios that will lead to a high-urgency home sale, but generally, these are the most common. If you’re a real estate investor interested in the advantages of motivated seller leads, you may be wondering where to find these sellers.
WHERE CAN YOU FIND MOTIVATED SELLERS?
Easy access to urgent listings is one of the main benefits of motivated seller leads. However, there are other avenues for investors to find these sellers besides motivated sellers leads. You can use some of these places and methods to find possible sellers you can market to.
- Expired real estate listings
- Probate listings
- Landlords that previously rented but currently want out
- Direct mail marketing
- Call listed sellers phone numbers
- Message or e-mail sellers linked to listings you found online
- “We Buy Homes” signs can bring calls from motivated sellers
- Place ads on social media platforms
Using your resources and a little ingenuity can help establish new locations and methods to find high-urgency sellers. But try not to make any mistakes that usually happen in the real estate world. One of the benefits of having motivated seller leads is the general lack of needing to cold-call and search manually. This blog might also be quite helpful for you if you want to find motivated seller leads.
ADVANTAGES OF BUYING A HOUSE FROM MOTIVATED SELLER LEADS
Several vital elements manifest themselves during a high-urgency sales transaction. These elements swing the tide into the favor of the investor during the buying process. Using the benefits of motivated seller leads during the buying process can lead to a shorter, more profitable outcome.
BENEFITS OF MOTIVATED SELLER LEADS INCLUDE A DROPS IN SALE PRICE
The need to quickly find a buyer and close the sale can lead to lower-than-market prices on houses. Owners will instantly rank the homes at rock-bottom prices to grab the attention of potential investors. Finding these lower-ranked homes is one of the main advantages of motivated seller leads.
Having these low prices are what gives a listing the description of being priced to sell. These discounted prices can lead to a rewarding profit after the investor lists the purchased home. Substantially lower final costs are one of the main benefits of motivated seller leads.
FAST CLOSING IS ONE OF THE BENEFITS OF MOTIVATED SELLER LEADS
When sellers have more time to let a house sit on the market, it can lead to a longer wait for a deal to close. These sellers are usually less prone to dropping their prices or come to a hasty agreement without doing some negotiating.
A motivated seller will generally take the first reasonable offer or be more open to accepting your counter-offer of a lower price. The need for an urgent exit from the home leads to less fight in the seller. Access to the benefits of motivated seller leads generally results in deals being closed much faster.
MOTIVATED SELLERS WOULD PREFER TO GET TO THE POINT
The average process of any traditional real estate sale usually consists of several open houses, contacting and courting multiple potential buyers, and a fair amount of offers and counter-offers. These activities take away time that motivated sellers usually don’t have.
A high-urgency sale has more chances of being a cut-and-dry process. The need for quick action usually leads to the seller being willing to get to the final point of sale. There’s no need to weed through offers when the final goal is to get ink on the dotted line.
TYPES OF MOTIVATED SELLERS TO OBTAIN A FAST CLOSING DATE
There are specific scenarios that homeowners can find themselves in that make them perfect candidates for becoming motivated sellers. One of the advantages of motivated seller leads is obtaining fast and direct contact with sellers in the following categories.
HOMEOWNERS WITH DELINQUENT TAXES
When a homeowner finds themselves buried in delinquent tax bills, it’s critical to find a solution to this problem. The IRS can garnish wages, place leans on other personal property, and lead you to a jail sentence if you don’t settle with them.
The possibility of jail is enough to turn anyone into a motivated seller. These homeowners need a fast closure so they can use the proceeds to pay off their delinquent taxes.
Homeowners with delinquent tax issues will sometimes take a substantial loss on the home to satisfy the demand from the IRS. This desperation can lead to obtaining investment homes for much lower than the market value or appraisal price.
One of the primary advantages of motivated seller leads is receiving access to customers with driving forces like delinquent taxes motivating their urgency. A steady flow of resources like this can add a boost to your property investment portfolio.
HOMEOWNERS THAT ARE RELOCATING
Homeowners who have the task of relocating in their immediate future have the potential to turn into motivated sellers. The earlier the relocation date falls on, the more motivated these sellers become. One of the main benefits of motivated seller leads is the opportunity to engage with sellers that are on the clock in terms of their window of time for moving.
Moving into a new house also means taking on a new mortgage or rent payment. If this relocation happens before the home is sold, a homeowner could be faced with paying double house payments in the following months. The need to save money will turn a homeowner into a motivated seller.
There could also be a chance that the homeowners were strapped for cash or on a budget. This scenario could mean that the homeowners have to sell the house before investing money into relocation. Much needed proceeds from the sale could add a layer of urgency to the scenario.
HOMEOWNERS GOING THROUGH DIVORCE PROCEEDINGS
A divorce can lead to the parties involved becoming motivated sellers. This scenario can arise because of several different factors.
If the homeowners remain on good terms, there’s a chance they will split the profits from the sale of their house. Sometimes both parties need these profits to prepare themselves for the expenses of living alone. They could also be seeking a quick resolution to the ordeal and feel the need to finalize joint ownership situations.
In some divorce cases, only one party will have certain possessions after a judge rules on the matter. A high percentage of these cases lead to the winning party seeking to liquidate the assets they now own as an individual. Newly awarded divorcees have the potential to make great candidates for becoming motivated sellers.
The urgency a divorcee or divorced couple displays might not be a product of the need for quick money. Sometimes the memories involved with a house after a divorce are something neither party wants to deal with. Regardless of the motivations, divorce situations almost always lead to a high-profit investment opportunity for a buyer.
Absentee homeowners can make great motivated sellers. An absentee homeowner is defined as an individual who owns a house or property but doesn’t dwell in the home.
Sometimes these situations happen immediately after obtaining ownership. In other cases, these situations are a product of owning a house over a long period.
If an owner obtains a house through inheritance or other means, they don’t always establish residency at the location of the home. This is especially true if the new owner already lives in a different region a considerable distance away from the new property.
In these situations, if an owner is unwilling to relocate or rent the property remotely, the typical outcome is the home being sold. Because of the distance, these owners are generally motivated to sell the house and avoid any maintenance costs or property upkeep.
Sometimes longtime property owners can become motivated to sell after years of renting the home or sitting on the property. Absentee homeowners have the option of allowing the house to sit and multiply in value. However, if the home isn’t maintained or property values drop, this can lead to a sudden urgency and need to sell.
Two common motivations for absentee homeowners are the owner not being able to keep up with the maintenance of the home, or they’re ready to cash in on their assets. Regardless of the reasoning behind the sale, absentee homeowners have the chance to become motivated sellers at some point.
Here at Motivated Leads, we help you generate more motivated sellers through Google and Facebook marketing.
HOMEOWNERS IN CRISIS
Sometimes a homeowner can suffer a crisis that prevents them from fulfilling their duties as a homeowner or forces them to have an urgent need for liquidation. If an unexpected crisis befalls the owner, they can suddenly become motivated to relieve themselves of the house.
It’s possible a loved one passed away or a family member in another state requires the live-in presence of the homeowner. Sometimes homeowners can fall ill and require the immediate need for relocation into an assisted living facility.
Sometimes the only option a homeowner has to solve their crisis is to sell their house. These homeowners are looking for a quick exit and direct path to closing. Capitalizing on the advantages of motivated seller leads can land you a beneficial property exchange with homeowners like this.
The owner will usually list the property far below the appraisal. Investors can capitalize on these listings to obtain houses they can relist for much higher, leading to an elevated percentage in profit.
A smart investor will quickly recognize the benefits of motivated seller leads. In some cases, the time exists for investors to hunt for potential sellers they can market to. However, the process of purchasing investment properties is already time-consuming.
Finding a source that provides quality, motivated seller listings can make the buying process easier. Any steps in the process that can be efficiently outsourced allow you to focus on future matters, such as preparing to relist the home you decide to purchase. Having a reliable partner to provide you with these leads can produce a more manageable investment experience in the end.