Manchvegas, NH · Member since 2014 · 137 posts · 9 votes
i am still baffled that we are able to talk someone down 70k from full market value. i understand that they are really motivated which is why they are somewhat hard to find.
but why does a direct mail campaign work? what motivates them about sending them mail 4 times? why wouldnt a common sense person just use a realtor?
i just dont get why someone after the 4th mailing would say "hmmm im gonna sell my house 70k below market value" instead of just using a realtor
Lack of knowledge - they could be under water and not know they can short sell their property.
Wholesaler creativity - maybe they owe more in taxes or some other debt than their house is worth. Example: Betty has a lien placed on her property by the HOA for $20k, and back medical bills of $50k, and her house is worth $100k. You offer her $50k AND you promise to pay off her debts. Instead you go and talk both debtors into erasing debt by 50% meaning you win and she wins.
Time - as @Joseph Ball if they need their money yesterday, and houses are taking 3 months to sell, that's not going to work.
Laziness - They're trying not to think about their problem, but it's hard to ignore getting the same mailer 5 times
Hassle of conventional mortgages - Deals fall through, people snoop around your house, not everyone wants to deal with that
I think it's tough to pin down an exact answer since many sellers seem to have different motivation to sell without a broker.
We bought one where the estate taxes needed to be paid off immediately, so they opted for cash. Another, where the tenant had not paid rent for nearly 2 years and the seller just wanted out. Other sellers have mortgages, medical [and other] bills that they are behind and nee to be paid off immediately.
I think others just don't want to go through the headache.
I tend to think of us as offering a white glove service. Don't bother getting the house in shape, leave whatever you don't want to take, no showings and other headaches, just take your check, your toothbrush, and other valuable possessions with you, and we'll handle the rest.