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7 Motivations For A Seller To Sell Quickly
When you run into a highly motivated seller, you will get a good deal as long as you play your cards right. Some might even be ready to propose seller financing just to let go as quickly as possible. There are many reasons why a property owner can be motivated to sell with financing. And many of those reason does not affect the viability of your investment at all.
Seller tight on cash
There are many reasons why a property owner might be unable to meet the monthly obligations of the mortgage. He might not be having problems now. But he predicts that he will start defaulting in the near future due to certain circumstances. The most common reason being the loss of a high paying job. Undesirable hobbies like gambling can also result in a seller running into this type of problems.
Property is no longer needed
The property in question may just have been an extra asset in the first place. It could be that the property was inherited or obtained it as a payment for something else. He also could have bought it during a hot market and is ready to sell. Whatever the case, he has no need for it and intends to sell it. These types of sellers are generally not investors and will be easier to deal with.
Funds need to be raised for other investments or purposes
Let’s not forget that real estate is just another avenue of investment. There are thousands of investment vehicles available all around the globe. The seller might have identified a better investment elsewhere and need to raise the funds to buy a ticket. Cash will be the main motivation in this case. If you are lucky on the time aspect of the seller’s requirement, you could grab a good deal here.
Seller decides to get out of real estate
Real estate is not for everyone. The seller could have jumped right in without fully know what he is getting into and now realises that he is not suited for real estate. Make no mistakes about it. Managing properties can be a very unforgiving chore for a lot of people. It is best to get out while it is still profitable before you start neglecting it due to tiredness. This is one of the most motivated type of sellers. And they often are receptive to compromises and creative seller financing.
Partner no longer wants to manage the property
It is a common place to find partners pairing up for real estate investments. Usually one party will contribute more cash while another takes responsibility over the operating of it. So when the chief operator decides to call it a day, the other partner usually finds a way to let go of the property. He has a full-time job that he is unwilling to forgo and does not have the time and expertise to manage the day-to-day attention. Don’t’ be surprised if the partner is in fact the spouse.
The biggest personal reason to sell a property is probably due to divorce. The truth is, few people will want to keep a home that reminds them of unhappy life moments after a divorce. It might even be a court order that is forcing the sale. Although it can look like an easy close on the surface, be prepared for irrational behaviour from any party. Usually the key factor is cash.
The owners have retired and decide to move to a smaller retirement home or even move in with their children. They prefer to use the equity in the house for travels and some luxury lifestyle. Their children have their own homes and there is really no need to keep a big house. This is a good opportunity for seller financing.