How to Find a Seller in a Tight Market

Take risks now by doing something bold and calculated. The real estate market has changed dramatically over the past decade and it’s becoming more and more common for a typical home seller to encounter investors. Both sellers and investors have become more sophisticated at putting together creative financing deals. As an investor, your advantage to finding a seller in a tight market is making sure the seller is aware that you are open to flexible purchase/payment options.

Options include certified funds, cash, pre-scheduled cash payments, or maybe the seller needs you to take over the existing mortgage immediately (as soon as a purchase contract is inked). With multiple options available, sellers may find a solution that suits their needs. Flexibility is the investors’ strength to find a seller in a tight market.

Investors’ Advantages to Finding a Seller in a Tight Market

Some real estate brokers are encouraging buyers to write letters to sellers appealing to the seller’s “sense of right” or giving an emotional reason to sell to them. As an investor, you can use a similar tactic. However, your letter emphasizes the flexible options you offer the seller.

Your cash offer goes a long way towards finding a seller in a tight market. Your emphasis is how the seller won’t need to be concerned with tight and drawn out financing qualifications. Your cash offer also means not needing to go through the appraisal process.

Another big advantage is when an investor makes an offer to buy “as-is”. Clearly, you need to know what you are buying but other buyers see costly repairs as the seller’s responsibility. In most states, selling as-is does not relieve sellers of their responsibility to disclose known issues about the house.

Be willing to close within 7 days. Sellers are enticed by this for many reasons. Very common reasons are that this does not rely on approved financing, appraised values, home inspections, or other deal slowing contingencies. Avoiding any or all of these steps greatly expedites the closing process.

Finding a Seller in a Tight Market - NOT in Financial Trouble

Very few investors work at finding motivated sellers not in financial trouble because they don't know how to put together the kind of deal that appeals to these people. Also, sellers don't know what kind of deal will appeal to them until it is laid out in front of them. Again, this is about creative and flexible financing options.

Finding motivated sellers not in financial trouble is a great investing strategy because there is far less competition and this can be a strategy requiring little or no cash from the investor. are always great strategies in any market. These sellers may not be in financial trouble but neither do they want to be paying on two mortgages, dealing with out of state inherited properties, or further complicating job transfers.

Many of today’s retiring baby boomers are looking for their own investing income streams. Subject to deals, owner financing, sandwich lease options, and many other flexible financing strategies offer the passive income streams these people are looking for. Each and every day, 10,000 baby boomers retire and are in need of a new income stream. As an investor, you appeal to these sellers that are not in financial trouble by making them aware of the options you offer.

By finding motivated sellers that are not in financial trouble, you are able to use advanced investing strategies such as sandwich lease options and subject to existing financing. Please learn exactly how to put these no and low cost strategies in place by reading .

Write Plenty of Offers to Find Sellers in a Tight Market

Find out the motivations of the seller and then write an offer. Few prospective buyers make offers on houses with a pending contract. The fact is, deals fall through because of inspections, financing, and other terms. Even when there is an offer on a house that interests you, make a backup offer that puts you in first place if the initial buyer walks away. It could be the seller will go for a different offer that has more appeal to them.

Just because an offer is pending doesn’t mean it will be accepted. Use the investing strategies mentioned here to place a more tempting offer in front of the seller. Most offers are made contingent on the buyer getting a mortgage, the appraisal being equal to the purchase price, and the buyer approving the inspection. Waiving one or more contingencies can move your offer to the top of the list. All of your offers need to emphasize the flexibility and creativity that you bring to the table as an investor.

Finding a seller now doesn't always end with your deal being accepted. If there are multiple offers, you may need to find a way to sweeten your deal without offering more money. Begin by asking what else will encourage the seller to accept the deal.