Motivated seller refers to homeowners who are in a hurry to get rid of their property for some reason. One of the advantages of finding such seller leads is that the house owners are ready to sell the property for around 10% to 30% less than market value.
However, these sellers have a strict timeline, and you need to act fast to strike a deal. Here are a few strategies to find motivated seller leads.
Finding the Data
To buy a property, you need to know about places to find data or list motivated sellers. Here are some places you need to look at:
Courthouse
The courthouse has a lot of real estate data on file. These data banks could have signals that lead you to a motivated seller. A delinquent tax list could provide you with information about prospective sellers and their addresses.
You can also look at probate sales lined up in the county. You may not get the actual addresses of the property owners, but you can undoubtedly get the mailing address that could lead you to them.
Specialized Websites
There are many specialized websites that provide you with high-quality motivated seller leads. You can visit these websites and search for properties for sale by zip code. You can also use other variables like market value, property type, and other variables to find properties that suit your needs.
Develop A List
Preparing a list of motivated sellers based on the collected data can help you succeed in this business. Once you have prepared the list, you can reach these house owners and use your negotiation skills to strike a deal. Here are the different types of property owners you need to consider.
Property Owners with Delinquent Taxes
House owners who are behind their taxes for two years could appear in the delinquent tax list. These properties owners need capital or could lose their homes entirely due to tax liens, fines, and penalties.
These house owners have urgency and do not have time to wait for a higher offer for the property. They are more likely to sell their property below market price.
When you buy such a property, you are liable to pay the delinquent taxes. So, you have to consider the unpaid dues while negotiating the price of a property with outstanding taxes.
Out of Country/Out of State Property Owners
You need to gather information about property owners who live in a different state or stay in a foreign country. They are more likely to be less attached to the property in question and may be willing to part with it for less than the actual market value.
There are several circumstances in which property owners may have to move to a different location, and their best option is to liquidate.
Absentee Owners
If the property has been vacant for long, there is a possibility the property owner has moved to another location. If they like a different living situation than what the vacant property offers, they are more likely to sell it for a lower price to get rid of it.
Send Direct Mail
Once you have compiled your motivated seller list, you need to plan for a direct mail campaign. It is the most time-consuming task, and you need to be patient while managing a direct mail campaign. You need to send direct mail pieces to sellers on the list and wait for their response.
Generally, you may be required to send more than one direct mail piece to get a response from the seller. The average response rate of direct mail campaign is 4-5%. It means if you send out 100 direct mails, only 4-5 sellers might reply.
Handwritten and customized letters can be good strategies to increase the response rate. Make sure you opt for “return service requested” available in the post office.
To sum up, these are the best strategies to find motivated seller leads. Buying property from a motivated seller can help you reap more profit in a deal.
