Investing in real estate is a fast-paced business. You want homes selling for less than they’re worth so you can make a profit. But the only way to do that is to find motivated sellers or sellers who can’t wait for the ‘perfect offer.’
There are many ways to pay to find homes for sale, but if you want to find motivated sellers for free, you have just as many options.
Here’s what to consider.
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What Does “Motivated Seller” Mean In Real Estate?
A motivated seller is someone who NEEDS to sell their property. This differs from someone who thinks they want to move or throws their house on the market to see what they can get for it with no real plan moving forward.
A motivated seller may be more willing to negotiate on the price or terms. They are often on a strict deadline too, though. Most motivated sellers need to sell and move within 30 days, but this varies by seller.
What Makes Sellers “Motivated”?
Sellers can be motivated for a variety of reasons, but here are the most common:
- The homeowner is behind on his/her payments and is about to enter pre-foreclosure or foreclosure
- The property is about to go to tax sale for delinquent property taxes
- The property was inherited and the heirs don’t want the property or don’t have time to deal with it
- Families that were relocated and need to move fast
- Investors who need to get out of an investment fast because they need the cash
Finding motivated sellers isn’t as hard as it seems and there are even ways to find motivated sellers for free.
Here are a few ways.
How to Find Motivated Sellers on Zillow
Zillow is one of the most popular platforms to find a home, and you can even find motivated sellers for free on there.
You just need to know how to read the data.
First, look for homes that have been on the market for a long time. Today ‘a long time’ could mean 30 days. Homes that aren’t getting snatched up within days leave sellers frustrated and motivated. They may be more willing to accept a low-ball offer or an offer with contingencies that they’d normally avoid.
Also look for homes that were listed, unlisted, and then re-listed. It’s usually a sign that something happened behind the scenes. The seller may have fixed the issue or just wants to get rid of the home at this point. Either way, they may be motivated.
How to Find Motivated Sellers on Craigslist
Craigslist is a seller’s marketplace for anything, not just real estate. If a seller is desperate enough to throw their home for sale on Craigslist, chances are they are motivated.
This doesn’t mean every seller on Craigslist must sell their home now or will negotiate, but most will. They often list their homes on Craigslist as a last ditch effort OR because they can’t afford a real estate agent and just want to get the home off their back and the cash in their hand.
Weed through the listings carefully, looking closely at the details and know-how to spot any scams, and do your research.
How to Find Motivated Sellers on Facebook
Using Facebook to find motivated sellers works a little differently. You’ll do more searching and possibly even advertising yourself to find motivated sellers for free.
Start by searching keywords like ‘distressed homes,’ ‘motivated seller,’ ‘sell fast’ or other words you think sellers will use. This will bring you to listings in groups and pages that match your query.
You can also join niche buyer/seller groups in the areas you want to invest. While there will be more competition in these groups since there will be hundreds of others like you, if you work fast, you may win the bid.
If you want to advertise yourself as a buyer of distressed homes or quick sales, you can create videos, a FB page, or advertisements. Facebook has an algorithm that knows how to reach out to your target audience, getting your ad in front of the right people.
How to Find Motivated Sellers on Propstream
Propstream is a real estate data app, providing investors with all the information they need to find the right properties.
With easy access to the data needed to find sellers, you can stack lists to find the sellers who need to sell the fastest. Create lists of sellers in pre-foreclosure, pre-probate, or getting divorced. Then create lists of all homes for sale and combine the two – stacking the information to filter down to the sellers who will sell for any offer you make.
Propstream has 153+ million property records along with millions of MLS record history, involuntary lien history, mortgage, and deed/sales history to help you create the perfect list.
You can try Propstream for free for 7 days to see if it’s right for you.
Other Ways To Find Motivated Sellers
FlipScout
FlipScout is particularly useful for house flippers and rental property investors. It has a number of features that allow you to analyze property deals quickly, including:
- Expected return on investment (ROI)
- Estimated renovations costs
- Foreclosure status
- Aggregated data from various sources
Drive for dollars
Do the searching yourself by driving around neighborhoods and looking for telltale signs of a motivated seller. Rundown homes, vacant homes, or homes sitting on the market for too long are great starting points.
Network
Get to know as many professionals in the area as possible, including city inspectors. Anyone that can give you a head’s up that a homeowner is underwater or struggling can give you the information needed to contact the homeowner to try to help them by buying the home.
Check out FSBOs
Homes for sale by owners may be motivated sellers who can’t afford a real estate agent. If you give them an offer that helps their situation, they may be willing to accept it just to get the home off their shoulders.
Direct Mail Marketing
Don’t overlook the benefit of mailers. Yes, we live in a world filled with social media, but direct mailers still have their benefits. You can get the word out that you’re ready to buy homes from motivated sellers. All it takes is one or two leads to get your business started.
Final Thoughts
Motivated sellers can be just about anyone. Even if a home isn’t rundown or vacant, you never know the story the seller has. They may need to get rid of the property quicker than you think for personal or financial reasons.
Searching for motivated sellers is much easier today than ever before. The internet, social media, and networking all make finding the right seller and property easy. You can find motivated sellers for free using any of the above platforms, and if you find that Propstream is something that helps you – it may be worth the subscription cost.