NWHomePro Advice Center

Finding The Right Seller

The best seller is one who is highly motivated. A highly motivated seller is more likely to sell for less than his or her home is worth.

To determine motivation, a buyer must find out why a seller has decided to sell and what the seller plans to to if his or her house doesn't sell. Learning these things can help the buyer get the price he wants, and help the seller get what he wants--a timely sale.

Few buyers have the opportunity to meet with sellers in advance of making a purchase offer, so they must insist that their agent attempt to get this information for them. Unrepresented buyers should ask for this informatioin too, but must also beware not to disclose compromising information of their own while talking to sellers.

The reasons sellers may give to explain a sale could be anything from a job change to a desire to be closer to family to financial problems, and more. In the event that a seller is experiencing a problem that has precipitated the sale, a buyer's offer to solve that problem (whether it be time-related or cash-related) can pay off in the form of a lower price or better contract terms.

For example, if a seller needs to move quickly, the buyer can offer to go through escrow quickly and close the deal fast—and offer a lower price. If a buyer can make an offer, even a low one, that gives the seller cash in a short time, then the seller will be more likely to accept.

Be cautious, however, of sellers who say they are motivated, but who offer no specifics. Not every "motivated seller" is as genuinely motivated as he or she would have others believe.

Some possible hints of a seller's lack of motivation:

The seller delays having the home appraised or inspected.
The seller is unable to clear up liens against his property.
The seller does not own 100% of the property, such as in a divorce or in a vacation or investment property that is co-owned by multiple parties.
The seller pushes back his move-out date.
The seller is having difficulty selecting a replacement property and doesn't have a back-up plan.

It is virtually impossible to find the perfect seller. However, it's often not too difficult to find out which sellers are the most motivated, and which ones aren't.