You can look for signs of motivation by getting the Sunday newspaper
and looking in the real estate section for places for sale. More specifically,
look for the following sources of motivated sellers.
“For Sale by Owner” Ads
If people are trying to sell property and don’t want to get a Realtor
involved, it shows motivation to sell. Maybe they can’t afford a Realtor,
don’t have time to get a Realtor, or simply want to sell it themselves.
This can lead to getting a good deal quickly because you can negotiate
directly with the decision maker.
Some investors just work with a list of properties; others work only with
Realtors and make a fortune. Everyone is different. It all works.
However, about 80 to 90 percent of the deals I do never go through a
Realtor. They’re never listed with the Multiple Listing Services. In the
newspaper, you have nonlisted properties for sale by owner, and you
also have listed properties that are for sale by real estate companies. You
may be able to make a living by responding only to For Sale by Owner
ads and asking them why they’re selling.
“For Sale” Ads
These lead you to Realtors or to people who just listed their house for
sale with Realtors. They’ll likely try to get full price. These are probably
not the best sources; sellers working through Realtors usually aren’t
motivated to sell at a discount, although you might find some motivated
sellers in this group if you are willing to make enough calls.
Expired listings can be a good source of deals. Contact some real estate
agents and ask them to help you make offers on all of the listings that
have expired or are about to. For example, let’s say someone listed a
house for sale with a Realtor for $300,000. The Realtor listed it for six
months and it has not yet sold, but the agreement expires at the end of
six months. Chances are the seller might now be more motivated. Do
you see how this list could be a source of some good deals for you?
Investment Properties Ads
Who would list properties for sale under the category of investment
properties? The following describes several possibilities.
Investors and Their Brokers
Investors can be understanding toward other investors, so sometimes
they sell the property for below what it’s worth. Or maybe the property
was purchased 30 years ago and hasn’t been fixed up or managed properly.
You might be able to buy it for less than market value because the
seller is motivated.