How to Find a Seller Now
Despite all of the talk and writing about how tight the real estate market is, there are still deals available. Six months worth of inventory is often considered a balanced market (favoring neither the buyer nor the seller). The national average is currently running at about five months worth of inventory – slightly favoring the seller. For investors, how to find a seller now, begins and ends with finding motivated sellers willing to sell at discount prices and/or helping with financing.
How to find a seller now typically includes houses involved with divorces, death of a relatives, job transfers, and serious financial distress. Some investors feel guilty for “taking advantage” of people in these situations but you shouldn’t. The fact is, they need to sell – you are actually helping these people!
Many Ways of How to Find Sellers Now
There are many ways to find motivated sellers but one highly and overlooked method is with the old fashion bandit sign. Place these in neighborhoods where you are interested in investing and you will receive telephone calls.
Another key method of how to find a seller now are the classified ads and craigslist. In the classifieds, don’t bother going through the ads with color photos. Instead, go straight to the small print ads. You’re looking for ads that included phrases like “fix-up”, “must sell”, “needs work”, “vacant”, and of course “motivated seller”. And while in the classifieds, don’t hesitate looking in the rental section. Disgruntled landlords will often consider selling when they are sitting on a vacancy.
However, don’t just scour the ads looking for properties. Place your own ads looking for properties on craigslist and with classified ad papers like Pennysaver, Thrifty Nickel, Greensheet, etc. You can use the same language that goes on your bandit signs – “We Buy Houses Fast”.
The list of ways of how to find a seller now is long. Here is an abbreviated version:
- Drive neighborhoods looking for vacant houses and FSBOs.
- Look for utility meters that have been tagged as disconnected.
- Foreclosure notices in the legal section of newspapers.
- Those with delinquent property taxes (look for tax lien auctions).
- Network with professionals – real estate attorneys, accountants, estate attorneys, etc.
- Magnetic signs on the back of your car – “we buy houses fast”.
- Offer the mailman a small finder’s fee.
- Doorknob hangers.
- Real estate investment clubs
The list of methods of how to find a seller now goes on and on. Included in this abbreviated list are very low cost or no cost methods.
How to Find a Seller Now and Close the Deal
It’s not only about how to find a seller now. It’s also about how to get the deal closed once you do find an investment grade house. A well located house in reasonable condition and priced below market will sell fast. In some markets, these houses are selling the same day they go on the market. You need to be ready to make a decision quickly when the opportunity presents itself. You need to know what you want and at what price point. Then you need to be prepared to pull the trigger on the spot.
You need to understand that no house is perfect. Not even brand new houses and certainly not deeply discounted houses. It’s fine making your purchase offer contingent on an inspection. However, realize that every inspection is going to report defects. In a sellers’ market, the seller isn’t likely to make any repairs, especially if there is a backup offer waiting. You can’t be too picky about needing to make some repairs.
How to find a seller now doesn’t always end with your deal being accepted. If there are multiple offers, you may need to find a way to sweeten your deal without offering more money. Begin by asking what else will encourage the seller to accept the deal. Maybe it’s a fast closing or maybe it’s a slower closing. If you can, you can waive a financing contingency. You can also waive a seller provided house warranty. The trick is learning what will make your offer more appealing to the seller without putting in more money.
By Wendy Patton
For more than 30 years, I’ve used the Sandwich Lease Options System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.
If you found this information useful, please visit again soon at wendypatton.com.
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