What Even IS a Motivated Seller in 2020?

[Erik Stark]

I have been investing full time since 2007.

When the REOs dried up, we were the first in our market (2011) to begin using direct mail and getting our portion of market share of motivated sellers who were not aware of the rising market. 

Ive been niche focused on probates, vacants, DFDs, under managed multis and distressed properties since 2011 and certainly as the market increases, the urgency has been disappearing from seller discussions. 

Is anyone operating a in a niche where there is motivation and urgency to sell a property at a FAIR price? 

Is anyone TRULY getting incoming lead gen from their marketing? 

Im curious to know what REAL investors are doing. Not looking for those webinars telling me how sellers beg them to buy their house (LOL)

Thanks BP. You truly are the worlds best real estate community. 

[Peter Mckernan]

@Erik Stark I know what you are saying, the market is so good, and has been so good for a long time that people are not willing to part with their properties without close to what market value is at this moment.

I just had a conversation with a person yesterday, house is in the name of his father, they do not want to go through the probate process (this was not in a trust) and wants to get rid of the house it right now. They were estimated a high amount for fees on probate from a few attorney's, and the property of course can be sold before probate ends; however, they still need to go through the process. As we talked about price of the home, he wanted us to perform the whole probate process for him instead of the attorney and also want to sell the home at market value. This is a tall order for all the moving parts and also, in the end to get that benefit of selling at top dollar. 

For us, mailers are still working (hand written and postcard), and we are working on one now that really does not want to sell on market. They are still wanting more; however, we are going to write an agreement for a FAIR price for the condition and situation they are in. 

It is tough when the market is super high and on top of that they are getting offers from others a lot higher than what the numbers would really work out at as the comps show for ARV.

All-in-all it's happening less and less for those conversations for selling off market with a fair price for both parties.