Motivated Seller - Real Estate Glossary - OfferMarket (2024)

FAQs

What do you offer a motivated seller? ›

What to do: If the seller is truly desperate, you should definitely offer less than asking price. Some agents recommend offering up to 30% or 35% lower than fair market value. Rhonda Duffy, an Atlanta, GA real estate broker and consumer advocate, says all buyers should start by offering 80% to 90% of list price.

Home sellers are free to reject or counter even a contingency-free, full-price offer, and aren't bound to any terms until they sign a written real estate purchase agreement.

One of the most common and flexible ways to structure win-win deals with motivated sellers is to use seller financing. This means that the seller agrees to carry back some or all of the purchase price as a loan, and you pay them monthly payments with interest.

The first important question you need to ask is what their goals are for the transaction. Every seller is motivated by something unique to them. Some want to sell because they are facing foreclosure others want to sell for the highest amount. Whatever the reason is you need to find it out in the initial conversation.

What is a motivated seller? ⏱️ A motivated seller is a person or business entity that needs to sell real estate fast. In traditional real estate sales, motivated sellers end up accepting lower offers from buyers because there is not sufficient time to attract buyers and make them submit competitive offers.

A seller may dismiss an offer altogether if they believe it to be unreasonable, incomplete, or otherwise not in their best interests. Sellers may choose not to deal with offers well below the asking price — "low-ball" offers — especially if they have better offers on the table.

Most sellers hope to have multiple offers, but sometimes it's best to take the first offer you receive. It may be tempting to hold out for a better price when selling your home, especially when your home is newly listed.

In theory, the meaning of a motivated seller is simple. It refers to a seller who wants to make a sale as soon as possible. Not only that, but they are willing to tell potential buyers about their desperate situation even though that could mean sacrificing their preferred sale price.

How do you talk to motivated sellers? ›

It is important to be personable during any communications with a potentially motivated seller because their situation could result from a personal or emotional stressor. Start your conversation by asking how they are doing, and be genuine as you build a relationship with any potential sellers you speak to.

By strict definition, a lowball offer is one that is significantly below market value. In practice, an offer is considered "lowball" if it is significantly below a seller's asking price. Understanding this distinction between market value and asking price is critical to your success.

The Single Biggest Determining Factor

It's value. Value is king when it comes to sales.

Explain the current market and what these homeowners can expect if they choose to sell. Help them see all the wonderful opportunities available to them in this seller's market. You can make sure they get top dollar for their property and you can get them into a new house they will be happy to call home.

Send Eye-Catching Direct Mail

And neither you nor your ideal prospect (the motivated seller) is going to give junk mail any attention whatsoever. If your mailers look like junk mail (even if they're not), if they are deceptive, too sales-y, or downright gimmicky, many people are going to throw it right in the trash.