What Motivates a Property Seller
Selling a property can be a tough decision for any property owner, whether it’s a residential or commercial property. There could be various reasons that motivates a property seller to sell, ranging from financial needs to personal circumstances. Understanding the motivation behind the sale is crucial for buyers and real estate agents to make the best possible deal. In this article, we’ll explore some of the common reasons that motivate property owners to sell their real estate assets.
I talked earlier about all the influencers of the types of motivation, but now I’m going to talk about the two things that you primarily look at when trying to find motivation.
There are two main things that you can look at when trying to negotiate with the seller.
Debt
Number one is debt.
Number one is pretty self-explanatory. The owner has a bunch of debt that they have accumulated because of whatever reason, whether they went through some hardships, some financial problems, or whether they were just not very good with their money.
They went out and bought a bunch of things that they didn’t really need, like new TVs, and new cars and it just got out of control.
Or maybe somebody lost their job or there was a financial crisis or somebody died or somebody gets sick.
There are lots of reasons why there could be a debt problem
So that’s one of the things you’re looking for, for motivation from a seller is what kind of debt situation are they in?
Property Condition
The other motivation is the property could be in disrepair. And what that means is they let the property get run down. Maybe some shingles got loose in the roof and water got in and the water ran down the side of the wall (happened to me). So now the wall has to be torn apart and it got into the floorboards.
One simple leak in a roof could cost $50,000 or even more.
If it got into the basement, maybe the basement’s flooded and the owner didn’t really have any money to be able to fix these properties. Over time, all these damages just started accumulating and all this disrepair needs to be looked after.
The other thing would be just regular maintenance, of standard things, like the roof, the windows, the furnace, and the carpets.
A lot of things need to be done to maintain a home
This is where you get into that argument “Is it cheaper to own a home or to rent?”
People think that buying is the best alternative because over time, you’re paying down your mortgage but you’re also spending a lot of money maintaining that property.
If you took all that money used for maintaining your home and put it into an investment, you’d probably end up making a lot more money by renting and investing rather than buying and owning and maintaining.
Summary
In summary, a property there are two things that motivates a property seller to sell – accumulated debt and poor property condition.
Accumulated debt refers to the situation where the seller owes money to lenders or creditors, and selling the property may be their only option to pay off their debts.
Poor property condition refers to the state of the property, which may be damaged, outdated, or in need of significant repairs. The seller is motivated to sell the property in its current state to avoid the cost of repairs or renovations. These motivations may impact the seller’s asking price and negotiation tactics with potential buyers.
