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How To Find Motivated Sellers

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By: Scam Risk - Expert Reviewer

How To Find Motivated Sellers 2021: Best Option For You!

If you want to be successful in real estate, your first aim should be to identify many motivated sellers.

If you can’t do this, the rest of the process is pointless because the entire game hinges on your ability to identify sellers who will accept your low bids and play by your rules.

Do you want to find sellers who are motivated? You are not alone in this.

For better or worse, thousands of real estate gurus and lead-generating businesses that target new real estate investors and brokers have popularized motivated seller lists.

Unfortunately, many new investors and agents learn that these motivated seller lists do not produce instant, easy results.

Despite this, motivated seller lists continue to be an essential strategy for tens of thousands of successful and seasoned real estate brokers.

Table of Contents

Finding Motivated Sellers...

So, how do experienced, data-driven real estate professionals find new transactions and clients following motivated seller strategies year after year?

This post intends to:

  • Go over some of the most prevalent marketing strategy errors to motivated sellers that result in lost time, money, and effort.
  • Look at how seasoned data-driven professionals strategically integrate the power of public records with their local real estate market knowledge to generate leads that drive new transactions and convert new clients.
  • Talk about how consistent and persistent execution of outreach (your brand impressions) leads to success.

But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.

This system made them swear off traditional real estate investing for good, because it uses some of the same skills but in a much more powerful and profitable way!

What Is A Motivated Seller In Real Estate?

A motivated seller refers to a property owner who needs to sell their primary residence, rental property, or another real estate asset as soon as possible and with as little fuss as possible. Typically, motivation comes as a result of particular situations related to financial difficulty or unexpected life events.

Extenuating circumstances frequently necessitate that homeowners sell their homes quickly without spending any time or money preparing the residence for sale. Motivated sellers are usually not in a financial or economic position to renovate or prepare their home to get top price for their property.

The seller may be willing to sell the property for less than market value in exchange for the speed and convenience that customers desire. This is where the term “motivated” in the phrase “motivated seller” comes from.

How Do You Identify A Motivated Seller?

A seller is most likely motivated to sell for one of the following reasons:

  • Divorce
  • Foreclosure
  • Limited space
  • Vacant homes
  • Absentee owners
  • Infractions of the law
  • Financial difficulty
  • Owners who are not present
  • Increase in property taxes
  • Real estate inheritance 
  • Job relocation or termination
  • Friends and family proximity
  • Properties that are physically damaged

Remember that there may be other personal reasons why a seller is compelled to sell, so establish rapport, get to know them, and learn why they are selling.

Where Can I Find Motivated Sellers?

How to find motivated seller leads? It all begins with your ability to identify a targeted list of property owners who are eager to sell.

You should not be interested in just any list of property owners. You should seek a specific group of statistically more inclined than the ordinary property owner to sell their property.

There are numerous approaches to obtaining these lists. Some strategies may be more effective than others, depending on areas you work in the country. 

Method 1: Collaborating with the County

Many prefer to get their list directly from the county.

You can specifically seek the county’s list of outstanding taxes. This list is available in every county. It is a gold mine of information that can assist you in locating some of the most highly motivated sellers in a specific area. 

Working directly with the county has advantages and disadvantages.

The most significant advantage is that the data is as current and accurate as it will ever be because it is pulled directly from the county’s database in real-time. Working with current and accurate information is ESSENTIAL when doing a direct mail campaign. Without it, you risk squandering a lot of time and money on mail that doesn’t go to the proper people, which can hurt your results in every subsequent phase of this process.

On the negative side, many counties might be tough to work with. Some of the lists provided by these counties (assuming you can acquire them at all) can be a nightmare to sort and organize. It is not impossible to do the task, but certain counties make it a complicated and time-consuming process.

Method 2: Using a Data Service

Another option is to order this list from a real estate data source.

A LARGE NUMBER OF COMPANIES can give these lists in a clean, usable style. Some are pricey, while others are reasonably priced. Some people excel at creating specific types of lists, while others excel at creating lists for different purposes.

None of them are perfect in every regard, but if you know exactly what types of property owners you’re looking for, the information you need is most likely available someplace.

The fundamental advantage of these services is that they make obtaining these lists relatively inexpensive, and they are both excellent resources for property research.

Keep in mind that all of this information is public. If you know where to go, you should be able to check up on any of these properties in minutes and discover most of this basic information on the county’s website.

The disadvantage of these data services is that some counties (particularly rural areas) will have obsolete and incomplete datasets. As a result, while most data services are significantly more convenient, they aren’t necessarily the ideal choice in every county. However, where it does work, it may do marvels.

As you may expect, many different persons and businesses use this data to make bulk mailings. If you’ve ever received junk mail, the sender likely obtained your name and contact information from a public information database.

How Much Should I Offer A Motivated Seller?

Motivated sellers have a strong desire to sell their property because they want to address a problem. Many motivated sellers require purchasing a home from a real estate investor to take them out of their challenging situations.

To design the ideal offer, a knowledgeable property buyer will need to determine the specific rationale. A motivated seller cannot refuse an offer that will help them solve their concerns.

Offering an innovative solution to the motivated property owner’s challenge while simultaneously providing the investor with a successful real estate investment opportunity will result in a win-win situation.

Unlike typical buyers and sellers, real estate investors can assist motivated sellers by offering to purchase the property immediately, in as-is condition, with no repairs, and in an all-cash sale.

These investors seek to profit by flipping the house, wholesaling the property, or renting it out for rental income. The alternatives are limitless, but it is up to the investor’s ideas and expertise to build the optimum solution.

Experienced real estate investors can build creative deals that coincide with the aims of sellers. The vast majority of retail buyers are unwilling or unable to do so.

Consider the following terms while negotiating with a motivated seller:

  • An All-Cash Deal
  • No appraisal contingency
  • No Financing Contingency 
  • Buying As-Is 
  • Seller Financing 
  • Lease Option 
  • Rent Back 
  • Cash Buyer Covers All Closing Costs
  • Closing Within The Seller’s Timeframe
  • Purchase Conditional On Existing Financing

How Do You Negotiate With Motivated Sellers?

You’ll learn a thing or two about bargaining with distressed property owners after spending a lot of time helping them over the years. Here are three tactics for negotiating with motivated sellers:

  • Ask Questions
  • Recognize What They Want
  • Understand Your Options

Ask Questions

Asking the correct questions is critical to getting the conversation going and your grasp of the situation dialed in.

Pose the following questions to the homeowner:

  • When did you purchase the house?
  • What is your motivation for selling?
  • When do you have to sell?
  • What is your mortgage balance on the property?
  • What would you think if I paid cash for the house?
  • What would you accept for the property if I made you an offer today?

Understanding what motivated sellers want is critical for real estate investors. If you understand why they are motivated, you will be able to determine their future goals and ambitions.

Provide a bargain that will relieve the motivated seller’s issues while also moving them closer to their aspirations.

Recognize What They Want

Listen to what sellers have to say and be respectful. These easy actions can assist a motivated seller gain trust in you, which will aid in the development of rapport. The way you handle yourself around sellers can help them to decide whether they want to give you an easy or difficult time purchasing their home.

A motivated seller may be more inclined to give advantageous terms if you have great personal traits and demonstrate that you are eager to accomplish everything according to their expectations.

Take the time to put yourself in the shoes of the seller and negotiate a bargain that benefits both parties. How much time does the seller have to close? Is a rentback or a leaseback required after closing?

Is your seller in financial trouble and urgent need of cash? Make an all-cash offer to them.

What you’ve done is given the seller speed and certainty in exchange for a lesser price. This is one of the many ways investors get amazing deals: by excluding standard contract contingencies like an appraisal, finance, and property inspections.

Another advantage you may point out to sellers is that they will not have to pay real estate commissions if they sell straight to an investor off-market. These commissions are typically 5-7 percent of the ultimate sales price!

Remind the seller that they will not be required to list the property, show the house to outsiders, have open houses, publicize their home, pay for home staging, or make any renovations.

Understand Your Options

When it comes to presenting an enticing offer to the seller, you must be aware of all of the components of a real estate purchase agreement. These are some examples:

  • Earnest Money Deposit 
  • Down Payment 
  • Contingencies (Inspection, Appraisal, Loan, etc.)
  • Purchase Price 
  • Closing Fees
  • Title Company or Real Estate Attorney Selection 
  • Closing of Escrow

You’ll be able to give an acceptable solution for the seller and take the property off their hands based on your appraisal of the facts at hand.

Remember, if you can’t agree on a price with the seller, stick to your numbers while offering all of the seller’s preferred stipulations. If the owner refuses to negotiate, don’t be scared to walk away.

There are always new opportunities to be pursued!

Where Can I Find Wholesaling Sellers?

To be successful in wholesaling, you must find and market to motivated sellers. How do you get wholesale real estate leads? How do real estate agents find them? A motivated seller is anyone who wants to move swiftly and has a financial position that necessitates the sale of the home. Sellers who are motivated are frequently people who:

  • Property taxes are unaffordable.
  • Managing tenants that do not pay their rent
  • Getting a divorce
  • Have serious health problems
  • Inherited an unfavorable property
  • Live out-of-state
  • Property in serious deterioration

These potential sellers can be found in a variety of ways and sites. Some of the most effective methods for locating motivated sellers for wholesaling include:

Craigslist: Don’t underestimate the potential of Craigslist when it comes to wholesaling real estate. The internet is an excellent location to identify property owners looking to sell their homes. To make the most of the site, design advertising targets a certain demographic: homeowners who cannot pay property taxes, are late on payments, or own homes in disrepair.

Delinquent tax list: Contact your county directly to receive a list of property owners who are behind on their taxes. Since these lists are updated in real-time, you will better reach the correct owner.

Paid data sources: Data is collected and sold by companies such as RealQuest, ReboGateway, and AgentPro247. To discover motivated sellers, the companies generate organized lists that you can use to send direct mailers or marketing emails.

A wholesale transaction works best when the seller is motivated. Using these tactics, you will spend less time and money marketing directly to your target audience, generate a higher ROI, and locate motivated sellers to launch your wholesale sales more quickly.

What Is Our Top Recommendation For Making Money Online In 2021?

Where real estate falls short is in scalability.  Because in order to make a good amount of money with real estate, you have to own several different houses.

And who has that kind of capital to start?

But what if you went local?

With Local Lead Generation, you will be getting service requests from multiple sites at every minute of the day from people who are willing to pay a lot of money for what you can provide them.

I was watching a YouTube video once where the host made a comment that it isn’t about making a lot of money from one website… it’s about making a little bit of money from lots of different websites.

So, think of it this way….

What if you could have streams of investment income where you operated 10 rental units that you could charge anywhere from $750-1,000 per month?

That’s $7,500-10,000 per month in passive income!

What If You Invested Into 100 Rental Units?

But instead of spending $Millions to build houses or apartment complexes… you spend a couple hundred dollars to build websites.

You then get those websites ranked in the search engines for specific home-based services that customers are searching for.

Next, you offer your lead generation system to local business owners who are looking for customers and are willing to pay you for their information.

And Then…

BAM!

You’ve just created a Digital Real Estate Investment Empire that is potentially earning you 4-5 figures in PASSIVE INCOME on a monthly basis without spending a single dime on ads.

With conventional digital real estate, you have to compete with thousands, if not millions of others who are selling the SAME product to the SAME customers.

Once the training program is completed you will also have access to a Facebook group much better than the real estate groups in our opinion. This group is much more active.

Unlike actual real estate, where you’re profiting maybe $250 per property, you could be getting 5-10X THAT.

With Local Lead Generation, the competition is virtually nothing and your profit margins are 85-90%.

Now, I could go on and on, but I’m sure you have tons of questions about how to create Digital Real Estate assets and start building YOUR digital empire!

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