ARE YOU LOOKING FOR MOTIVATED SELLERS? YOU HAVE OPTIONS VOL 2

If you are an investor or entrepreneur and are looking for motivated sellers that are desperate to sell their houses read on. There are many more options available than there used to be regarding HOW motivated sellers can sell their houses.
Today’s real estate news seems to be filled with doom and gloom. However, motivated sellers have a lot of options. Learn more about these options and how they effect you as an investor/entrepreneur in this easy to read 3 volume blog.

In volume 2 we’ll discuss another option for a motivated seller to sell. For Sale By Owner, or FSBO is exactly as it sounds. It is the process of marketing, buying and selling of real estate by the owner without the representation of a real estate broker.

As you read in volume 1 there is a hefty cost associated with using a broker/agent. So, many sellers choose to sell via FSBO to avoid paying so much commission to a broker/agent. Exact amounts differ between markets but it usually ranges between 5% and 7%.

The only way for a motivated seller to avoid all commission is if the seller AND the buyer are both not represented by an agent. If a buyer who is represented by an agent is interested in a FSBO home, that buyer's agent may request the owner to pay a finder's fee for bringing the buyer. Many agents have pre-printed forms and pre-negotiate an agreed upon commission rate. This allows agents to have a larger pool of houses for sale to show to their clients.

To protect themselves, FSBO sellers typically will have lawyers draw up an agreement (for a fixed fee) often as part of legal representation for the purchaser. While kits found at office supply stores are relatively inexpensive, a poorly constructed purchase document could result in a transaction falling through or even in litigation.

The internet has completely altered the real estate market. Motivated sellers can now advertise their homes online and post them to FSBO websites and even the MLS as you will see in volume 3.

How this relates to you as an investor or entrepreneur again depends on the amount of time and money you are able to spend on sorting out the sellers from the motivated sellers. FSBO usually attracts a more motivated seller than traditional “seller agency” and they seem to be open to more creative ways to sell their house. However, there are still a large percentage of sellers that aren’t motivated enough for you to truly help them and make a worthwhile profit. If you contact enough FSBO listings by calling, bulk emailing or paper mailing you will find those that are desperate to close a deal.

For more on how motivated sellers options affect you, see volume 3 of this blog.