They Are All Motivated Sellers

The importance of finding motivated sellers is stressed by almost every real estate guru out there. Of course it is ideal if you can find that seller who just wants to get rid of his property no matter what - and fast! All sellers have their own motivations, though, and you can make a better deal out of any property if you learn what those motivations are and use them in your negotiating.

In a sense, a seller is a motivated seller the moment he puts that "for sale" sign out. You know then that he is motivated to sell, but the important question is why he is selling. Beyond that, you want to try to learn the seller's motivations for every other aspect of the process too. Why does he want to sell a particular way, for example, why does he want the price he is asking, and what's important to him when making decisions.

Watch for personal motivators that are a part of his or her personality, too. Note whether the seller is more motivated by what she reads or by what she hears. Does he seem more motivated by the promise of a fast sale, or a high price? Listen to what sellers say for clues.

Making More Motivated Sellers

Normally, when a seller continually says, "I see," he is more visually oriented and motivated. In that case you want to show such a seller the advantages of your offer. You don't want to just explain your offer. With this seller you would point out on paper why it can work for you both.

Suppose you hear statements like "I just don't want any problems," or "I just want to be done with this." Of course this indicates a classic motivated seller, but more specifically it indicates the seller is more motivated to avoid stress than by positive goals. This means you would want to make the process as easy as you can for the seller. You might also drop hints that this is her chance to "be done" with selling.

Start gathering information on the seller's motivations early in your real estate negotiations, then decide how to use this information. How do you use it. Follow the examples above, and think about each factor. Suppose the seller likes to see himself as a shrewd negotiator. Let him "win" a lot of small concessions during negotiations, in order to get what you need most.

When you tap into a seller's own motivators, you make him into a more motivated seller. You should even use their own words. If a seller says "I understand" quite often, then start a statement with "I think you understand why..." Their words mean more to them than yours.

Search for any specific motivations involved. For example, if you learn that a buyer of your house wants to be able to tell his friends what a great price he got, maybe you can let him have it, and push hard on every other area. You could get the terms you want, have him pay all the closing costs, etc. Have the attitude that if he'll give you what you want, he'll get what he wants.

You have certainly heard of win-win negotiating. It is one of the most important principles of real estate investing. To let the seller "win," though, you have to learn what winning means to him. Then you have to use what you learn. that's how you make all sellers into more motivated sellers.

Copyright Steve Gillman. Visit his website for:Business Economics Economics
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