I always start with asking the seller if there is a particular reason they are looking to sell. You really need to find out what their motivation is. If the reason is not very motivated, the deal is probably not going to be a good one.
For example, “We are just looking to upgrade our house” is NOT a motivated reason.
- “We are going to lose our house to foreclosure in a month if we do not get it sold” IS a motivated reason.
- “The property needs a lot of work and I do not have the cash to fix it up” is another motivated reason.
We need to get a feel for the seller’s motivation because if they are motivated, then you know you can deal with them and possibly get the property at a discount. As you may or may not have figured out by now, real estate investors do not pay retail price for a property. We should be buying houses at a 50% discount or more.
When a seller is not motivated to sell his/her property, they are less likely to take a discount offer since there is no pressure for them to get the property sold.