What is a Motivated Seller?
A motivated seller is an individual who is anxious to sell a real estate property. Examples of reasons they are anxious to sell include:
- Financial Difficulty
- Medical Issues
- Job Relocation
- Bad Tenant
- Absentee Owner
Why look for a motivated seller?
Motivated sellers need to get out from under the expenses of maintaining the real estate property, which gives buyers leverage when negotiating. For example, we viewed a 1 bedroom condominium that has been on the market for 5 months. When it first came onto the market, our Real Estate Broker had difficulty obtaining a key so we could see the unit. Apparently, the tenant was not open to viewings. The listing disappeared for several weeks, then came back on the market. Our Real Estate Broker checked with the Listing Agent and determined that the tenant had finally moved out.
Our Real Estate Broker warned us that the smell in the condominium was very “strong,” so we prepared. The tenant left behind old food, personal items and trash.
The wall-to-wall carpeting is dirty and worn, so it needs to be replaced. The walls need to be patched and painted. The building was constructed in the 1950s so the walls are concrete, which is an advantage.
The bathroom is in decent condition. The tenant left several toiletry products but the tub and tile are fairly clean, so it’s a wash.
5 Signs of a Motivated Seller
This property screams Motivated Seller! Why? Here are 5 reasons:
- The property has been on the market more days than the average number of DOM (days on market) for the area.
- The tenant was uncooperative when agent’s tried to schedule viewings, i.e., bad tenant.
- The tenant left the property in poor condition, i.e., bad tenant.
- The seller knew we were viewing the property but did not have it cleaned, therefore we assume the seller has financial difficulty or is an absentee owner.
- The listing of the property contained no photographs of the inside of the condominium, which is an indication that the interior is in poor condition.
A motivated seller gives us negotiating leverage, so if we do make an offer on the property, we will offer 15 – 20% below the asking price.
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The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.