Home Buying & Selling 3 Types of Motivated Sellers & How to Win Deals By Solving Problems

3 Types of Motivated Sellers & How to Win Deals By Solving Problems

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Do you find it difficult to acquire your first property or expand your portfolio? Tired of competing with retail buyers and investors in this hot real estate market?

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According to 2016 Attom Data, off-market real estate accounts for 24% of all transactions in the Mid West region of the United States, and that number is increasing each year. What does this mean? There are a lot of motivated sellers out there and there are deals.

Your job is to understand different types of motivations, find ways to reach those who are motivated, and understand how to solve the seller’s problems.

Motivation for 3 types of sellers

Seller motives are generally divided into three buckets.

  • Financial distress
  • Mental distress
  • Property pain

When motivation can find a seller who hits multiple buckets, you tend to find more. However, this is not just about finding a screaming deal for you. The deal will find you when you can solve someone’s problem and you become known for it!

Related: Creating a REI Story: How to Become the “One” of Choice for Motivated Sellers

Financial distress

A seller in financial distress may have experienced one of the following life events:

  • death
  • divorce
  • unemployment
  • bankruptcy
  • Rehabilitation did not go well

This is not a complete list, but this type of seller is usually trying to leave the property to solve a life event related financial problem.

Perhaps they can’t afford to pay for the property. Or you have a pile of tax invoices and someone is trying to rob you of your house. Or they may no longer be able to afford repairs and want to move on.

This type of seller may be looking for the highest price for a property. They are even more likely looking for someone to solve the financial pain that property is causing them.

Mental distress

Sellers with emotional distress may have experienced one of the following life events:

  • death
  • divorce
  • transfer
  • Elderly people who need miniaturization
  • Investor ended in rental (Because of peasants, bad renters, postponed maintenance, rehabilitation failure, etc.)

Keep in mind that life events may be the same as those in financial distress. However, the motive for selling is different...

This means that you need to change your approach. This seller may not need to sell for financial reasons, but real estate is beginning to cause serious mental distress to them.

Last year I got a property that another investor is rehabilitating. He had completed his rehab himself and soon realized he was holding his head. That makes sense. He had a new child at home. It was hard. We picked it up and used the system to quickly complete the rehab. Investors can then move on to another project in their comfort zone and spend time with their new family.

Property pain

Sellers suffering from property pain are probably experiencing one of the following problems:

  • Postponed maintenance
  • Property repairs (ie fires, natural disasters, accidents)
  • Property death
  • Property tax is not paid
  • Properties are dated

When real estate is in need, it is generally a safe assumption that sellers are also motivated by financial and / or emotional distress. The combination of solutions will help you deal with the problem.

Where to find motivated sellers

You can look up MLS to find deals, but aspiring sellers are often overwhelmed by life events and struggling to find out where to start. So you need to find them.

You can find motivated sellers in countless places (The last two are my favorites!):

  • Obituary
  • Submission to court (ie divorce, bankruptcy, prosecution, tax office, foreclosure)
  • lawyer
  • Property manager
  • Senior Move Manager (Yes, this is a real profession!)

Sad businessman leaning on the glass

How to solve the problem of motivated sellers

If you find a motivated seller, talk to them.Find out how they think and feel and how they understand You can solve their needs.. Check out the book Find deals and fund To Anson Young For great scripts and hacks.

Here are some ways I’ve succeeded in solving the needs of motivated sellers:

  • Best offer
  • Cash offer
  • Large-scale full-scale deposit
  • Quick closing
  • Long clothing
  • Flexible closure
  • Do not request repair
  • Allow sellers to refinance for a period of time
  • Pay the closing cost
  • Take care of whatever they leave behind
  • Hire a mover for them

Case Study

Last year I found myself In a nightmare situation, I am working on my mother’s property from more than 1,000 miles away. I was a motivated seller!

In formulating my strategy, I had some investors tour the house, and I was very clear about my needs and why I offloaded my property:

  • Property pain: It turns out that the house is old, almost unmaintained, and just new. Foreclosure.. (surprise!)
  • Financial distress: I had to manage the real estate, maintain the real estate, and pay the prepaid cost to sell it (obviously it wasn’t what I planned!).
  • Mental distress: With the exception of my mother’s death, all my parents’ belongings (including my childhood belongings) were packed into my house. I didn’t want someone to throw everything in the trash. Instead, I wanted time to hold an online auction to give my belongings a new home.

After meeting 10 investors in 3 days, I got 7 offers. Five of the seven investors lost because of the simple fact that they didn’t help solve my emotional pain of wanting to hold an auction. Of the two remaining offers, the ones that won are: (Go back to the “Pain List” above to see how many boxes this offer checks!)

  • All cash offers
  • Flexible closing (I had to negotiate a verification system)
  • Did not request repair
  • I paid the closing cost
  • Allowed two online auctions and removed and donated all other items not for sale

Related: Game Changer: How to Identify Motivated Customers


What I learned through that process was valuable to my investment strategy.

First, outside MLS, there are countless places to find motivated sellers. In this case study, it was the senior move manager who connected me to the investors. Second, the investor took the time to really understand my selling motives and how to really solve my problem.

Third, she understood my motivation, so it was easy for us two to make something that was mutually beneficial and to sell to her. She was a problem solver, and I guarantee her business is booming for this skill.

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So I’ll leave this to you: Who are you going to help solve the problem? What do you think of the above advice?

Please refer to the comments below.

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