Saturday, May 12, 2007

What Causes Motivated Sellers?

When investing in real estate, always try to keep an eye open for motivated sellers. Here are some things to look out for when seeking a motivated seller:

If you are looking at a property and it's listed well below market value, than the seller is either trying to get rid of the property in a hurry or a careless FSBO. If an appraisal comes in at a higher value than what it is selling for, check it out as an investment.

There are a few reasons why a seller would want to sell their property in a hurry. One reason is the unfortunate event of bankruptcy. The seller may be able to avoid bankruptcy by selling their home quickly. Another unfortunate event may be foreclosure. The property owner was unable to pay their monthly mortgage payments and are losing their house. The best option for people going into foreclosure to avoid foreclosure is to sell their home and save their credit. This is a great opportunity for investors to make money and help someone in need out.

Sometime sellers want to sell their home because they are moving far away and don't want to deal with the property sitting on the market for a long period of time.

Divorce is another situation which is good for real estate investors. During the process of splitting assets, they may want to sell the house for less than market value.

Sometime when people retire they want to relocate to another state. By moving they sometime want money to purchase a new residence and want it quickly. Sometimes they just want to get rid of their old house.

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