Mother & Daughter Blog: Buyers: "Motivated Seller"..... OK this is going to be a deal... right?

Motivated Sellers:  What are they, where can you find them and why are they motivated??

A motivated seller is usually a person who is looking to sell their home quickly, and usually is less concerned with the sale price. But please be forewarned that seeing the "Motivated Seller" does not necessarily mean that a seller is desperate enough to agree to a quick and costly sale.

A motivated seller is someone who has a very strong need or desire to sell his or her property and nothing else but selling will work for this individual.

A motivated seller could be an advantage to a buyer, but it would be a better advantage to the buyer to ask questions about why a seller is motivated.  If you do not know what the motivation, how can you help the seller?

Some of the reasons seller can be motivated:

• Job lost
• Family crises, such as health issues
• Financial
• Need to move
• Strictly emotional
• Divorce
• Property is falling apart and want to get out from under it
• Property is overpriced
• Seller is purchasing another property and need the money from this sale
• Seller is transferring to new location for a new job
• Seller is trying to avoid foreclosure (very popular in this "soft market")
• Ad can be misleading in that motivated seller can be designed to elicit interest in a property
• Seller maybe a For Sale by Owner and is right at the point of frustration
• Seller may have inherited the property and want nothing to do with it, but to sell it

When a seller is truly motivated here are some of the ways that can be an advantage to buyer

• Seller may agree to lower the price
• Seller may assist in creative financing
• Seller may assist with down payment assistant programs
• Seller may agree to do owner financing
• Seller may assist with closing costs
• Seller may be flexible in closing date and other terms and conditions
• Seller may throw in extras

Ads that read "motivated seller," just know that it is rare that a seller's motivation will dramatically affect the price of a home, but it is often possible to save a few thousand dollars.  It makes good sense to ask why the seller is motivated so that you, the buyer, is better equipped to make a offer that the seller will consider and agree to.  It is also good to get a home inspection and appraisal to be sure the property is all that you expect it to be.

In summary, there are several reasons why a seller can be "motivated" to sell, but never take it for granted that because you see the "motivated seller" notation that it will be a piece of cake to get the seller to agree to a lowball offer or your asking for more incentives that the seller is willing to give up.  Always ask why the seller is motivated.