To invest in real estate, you must first have a few properties to buy. With the constant movement of people, finding a home for sale is the easy part. As a real estate investor, you want to focus your efforts on identifying homes with motivated sellers to uncover great deals. This is why the primary objective of real estate investors is to find motivated sellers or owners who have an urgent need or desire to sell.

While motivated sellers are not the only option for acquiring real estate assets, they are one of the most effective methods of acquiring distressed properties or closing a fantastic deal. In this article, you’ll learn how to find real estate deals to invest in from motivated sellers.

What is a motivated salesperson?

Developing the ability to identify motivated prospects is a skill that every real estate investor should develop. A motivated seller is a person or business who wants to sell a property they own. Someone who has a serious motivation to sell their property is a motivated seller. There is a common misconception that offering low prices, deep discounts, and flexible financing terms encourage customers to bid on the items they want to purchase.

For all types of real estate investors, motivated sellers represent an abundant source of investment capital. For example, when I want sell my house quickly, an investor can make a larger offer. When sellers are in a hurry, they can devalue their property and accept investment services. Timeframes can range from selling the property quickly to negotiating alternative financing terms such as raising money up front and paying off the balance over time.

Types of motivated real estate sellers

Here are the best situations where you can deal with a motivated seller and get a good deal with the investment property:

  1. Foreclosure

A homeowner can be in danger of losing their home as a result of foreclosure. When a homeowner cannot make payments, the lender can force the property to be sold through a foreclosure auction in order to pay off the debt. While this is a quick way for the lender to recoup their investment, it is a horrible option for the homeowner, as auctions usually result in lower selling prices. Plus, it leaves a stain on borrowers’ credit, so they usually want to avoid it at all costs. They will usually look to sell quickly to avoid foreclosure, if there is no other way to save their home. This is the best time to negotiate with a motivated seller and invest in pre-foreclosure homes.

  1. Property with overdue taxes or tax changes

Changes in tax laws have often been important motivations for selling. When tax laws are changed, investors may need to act quickly to avoid increasing their liability or making the property less attractive to potential buyers. Keep in mind that an increase in interest rates can have a similar effect.

Apart from that, the solution for sellers who are motivated to pay overdue taxes is to sell their property. The most common method of selling a home with unpaid property taxes is to repay the taxes with the proceeds of the sale. This is where you would come in.

At closing, the proceeds from the sale of the house will be applied to the mortgage and then to the lien. A closing lawyer will oversee the transfer to ensure all taxes are paid in full. After closing costs and real estate agent fees, any remaining amount will be returned to the seller.

  1. Extensive repair

When a property deteriorates, the owner may be unable or unwilling to invest in renovations. They would prefer to sell their house soon and in its current condition. Millions of distressed properties are available, whether due to deferred maintenance, age of property, vandalism, flooding, storm damage or fire. The fines, costs and violations associated with these issues can be costly to resolve.

  1. Moving house

Career changes, job loss or relocation of an employer are all compelling reasons to sell a home. Few people have significant savings to withstand the dry seasons or manage two mortgages. Motivated sellers will list the property for sale on the open market and anticipate an immediate cash close. You can take this opportunity to invest at a discount of one motivated seller.


Attending open houses, real estate sales, or working with a local real estate agent can help you find motivated sellers. Suppose a house has been on the market for the given situation. In this case, the seller might be more willing to negotiate a lower price. Consider the ideas mentioned here when planning and preparing your investment in the property of your choice.

Authors biography

Alison Smith is a marketing communications professional who now resides in Chicago with her family. In addition to articles on real estate, she writes on employment, children, elderly care and health issues. She volunteers as a skilled arborist, theater enthusiast and literacy volunteer in her spare time.



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