You may assume that a seller is automatically motivated the second they list their home for sale. This is not always the case. Not every seller is motivated, and this even includes the ones that say they are. So, how are you supposed to know exactly what type of seller you are dealing with? Find the answers to the following questions.
1. Is the Seller Desperate?
You can learn a lot about a seller by following their listing. Has the house been on the market for a really long time? Has the agent mentioned that they are making a long distance move and need to sell the home fast? If a house has been listed a while, and it is empty there is a good chance the seller has already moved and is paying two mortgages. You may be able to get as much as 25 percent, or more, off the listing price.
2. Is Something Structurally Wrong with the Property?
The property could have termites, mold, or serious electrical problems. Maybe it is in an area that often gets hit by frequent flash floods or it is on a hill that is slowly eroding away, and will soon become a huge concern.
3. Are There Construction Projects Planned?
They may know that they need to move the house before that supermarket gets built next door or major road construction starts taking place. Always obtain a planning report from the city to learn of upcoming planned projects.
4. Is the Seller Being Tricky?
Does your newly listed dream home have a super low price that is too good to be true? If so, they could be trying to generate a bidding war. They price low to attract a lot of attention, and then the agent requests all interested parties to submit their highest offer. School district and parking are two main contributors in making a home attractive enough to generate a bidding war.
5. Is the Seller Just Bored?
Some sellers simply enjoy the cat and mouse negotiations. You can often tell if you are truly dealing with a motivated seller by looking at how long the house has been on the market, and if there has been any price reductions.
Motivated sellers are not always as anxious to sell as you would hope. Reviewing the history of the listing and having a home inspection done is a good place to start. You should also review a city building project assessment. All motivated sellers are different. Take the time to figure out what type you are dealing with to put you in a better position to bid and ultimately buy the house you want.