Vendor Motivated - Essential Info

[jonathanpenner]

I am currently working on creating a system that would make it easier to find and qualify motivated sellers. I've been with REIN for a while now and gotten feedback from some of you in terms of how you go about qualifying motivated vendors. However I would really like to know what other REIN members would consider to be the initial key qualifying Q&A.



So here's my question.



What key things would you absolutely need to know about a seller and their property to ID them as a motivated vendor? In other words if I could place a video camera in front of a potentially motivated vendor and you were to tell me what to ask them, what would your questions be?



Jonathan

 

[Stephen1151]

would you take 50% off the asking price? : )

 

[MrHamilton]

[quote user=stephen]would you take 50% off the asking price? : )




LOL



Here are a couple items on my checklist:

• Ask why are you selling. Get the vendor to do the majority of the talking and let their response determine your next probing question
• "Have you had any offers?"
• "If I paid you in all cash with a closing date of your liking what would you accept?"
• "How much do you owe on mortgage" or conversely "How much equity do you have in the property"
• "Is this an illegal X-plex? Does the city know this is an illegal X-plex?" if the answer is yes and the vendor doesn't have any capital to make the property legal, you can bet they are motivated
  
  
  Other signs:
  
  
• Vacant unit/s
  hydro has been shut off
  listing is over 60 days old
  cheap for rent yard sign - indication of an unsophisticated investor who will not maximize rental income
  by-law infraction posted on front door
  lack of yard maintenance
  Look for signs of a divorce: man and woman's names on title yet only woman's clothing in the closet

Hope that helps!

Erwin

 

[GaryMcGowan]

Great post Erwin,

Yes, you need to ask the seller why are they selling if they give you a compelling answer then you move forward. If their answer is vague and they don't provide any information then they are probably not very motivated. There are a lot of sellers that believe they can sell their home and save the realtor fees but still want the high prices. You need to be able to filter them out quickly. Ask them why have they not listed with a realtor? You need to ask very direct questions and also leading questions to get them to open up about their home and situation. Think of your self as a solution to their problem (if they have one).

 

[RussellWestcott]

Jonathan, great question. If you go back to your ACRE program (homestudy or live version upcoming this year). There is a great checklist in the program (in the property ladder section).



You can find this checklist --> click here



As well there is a great audio program you can listen to help you with this --> click here

 

[jonathanpenner]

Russell, I saw the VendorMotivationChecklist a while ago, but couldn't find it again. Both these are great resources. Thanks for the links. I'll have a listen to the MP3 this afternoon.

 

[invst4profit]

I like to cut straight to the chase.



How much do you want for it?



What is your absolute bottom price you would take to sell it today ?



The answer to the second question is the best measure of how motivated the seller truly is. If there response to the second question is: "How much are you willing to offer", they are not very motivated.