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9 Keywords And Phrases In Ads That Depict Desperate Sellers
Every real estate investor or home buyers in general would love to acquire properties from a desperate seller.
They are receptive to quick deals, might be in a compromising mood during negotiation, and you might even be doing him a favor by agreeing to strike deal fast.
This is why if given a choice most, people would love to deal with desperate sellers. Some even make it a point to sieve them out and only deal with them exclusively.
But with property listings in online portals and classifieds ads dominating the marketing of available houses to buy, how does one get a feel of how motivated an owner is to sell?
Certain keywords and phrases used in ads can actually show signs of the level of desperation a seller is.
Here are some of them to keep an eye out for when going through the listings.
1) Below valuation
It cannot be clearer than “below valuation” that you are going to get a deal priced below the appraisal value of the property.
This means that the seller is so motivated to sell that he is willing to let go below what the property is worth.
However, do note that agent sometimes mention “below valuation” in ads just to get more attention and arouse intrigue. When you call up, they can very well say that the house is worth a value that is much high than what an appraiser would value it at.
Agents or sellers can then sidetrack and insist that value in “below valuation” refers to their own value.
If you are looking for emotional sellers, few occasions can be more emotional than divorce.
The used-to-be spouses are desperate to liquidate the asset which they have joint ownership on. And they probably cannot wait to cut off the final link they legally have to each other.
If you agree with this point of view, you should be able to see the massive amount of opportunities available in the market when you realize divorce rates are at record highs… and climbing!
It is make or break time for the homeowner.
They are going to lose the property to foreclosure and this is the final throw of the dice to maximize the proceeds that the house can generate.
Find out when the foreclosure sale is happening. And if you find out that they have equity in the property, consider making an offer to buy over that equity.
If there is no equity, you are looking at a house with short sale potential.
When a household has to sell a house due to health reasons, they are looking to make their lives better by moving to anew house that fits their needs.
Sometimes, sickness can cause people to be unable to climb stairs. Or a family member needs to reside in an area close to a rehabilitation center. Sometimes it can even be because of medical bills. And many other practical circumstances.
You are looking at a potentially quick transaction here. And you are also helping the folks out.
When there is death in a family, the family might want to move for various different reasons.
- They want to give up the memories in the house
- The sole breadwinner is no longer around and paying for the house is no longer sustainable for the widow
- The house is too big for the remaining family members
- The property is an abandoned house owned by the deceased and the family decides to sell it to split the proceeds between them
Just be a little sensitive to the sellers’ emotions when dealing with them.
6) Owner will carry
This is music to an investor’s ears if he loves leveraged deals.
Owner will carry means that purchasing the property comes with a built-in lender to finance the deal.
The owner will carry the mortgage for either the entire or a portion of the purchase price.
Look at it this way.
The seller is so desperate to have a new owner for the property that he is willing to carry the financing on his own back.
7) Overseas job posting
There are many variations of how this phrase can be written in text ads.
Whatever the case, it is the seller communicating that he is going outstation due to job commitments.
These owners have limited time to close. And that is a very powerful factor that can swing negotiations your way.
Get ready for competition as investors and buyers will be all over this one.
The winning buyer of this type of desperate sellers is usually the one who manages to arrange the most face-to-face meetups with the seller himself.
It’s not always the price that is the critical factor.
8) Job loss
Sometimes homeowners voluntarily declare job loss as the reason they are selling.
I think that in some way, they are trying to subtly communicate to buyers that they are desperate to sell. Yet even so, they hope the potential buyers to have a heart and not to execute extreme lowballing.
You could potentially make a deal here with inherited tenants.
Close at a respectable price, and rent it back to the seller at an affordable rate… as long as you don’t make a loss on it.
9) Motivated seller
Real estate agents like to mention “motivated seller” in their ads when there is a reason why the owner has to sell quickly. But unwilling to specifically indicate what the reason is.
In any case, the agent feels that there is a big potential for a quick deal being made and thus informs the readers of a motivated seller in words.
When scouring for good deals to get involved in, at least make a courtesy call to these ads just to feel how hot the selling temperature really is.