“I Buy Ugly Houses”- And Other Tactics That Can Help You Find Motivated Sellers!

There is nothing better than finding that perfect deal. Whether you are new to the real estate business or an old pro, finding a motivated seller is like winning the lottery. If you play your cards right, you can find a home for far less than the market value. The trick is to figure out how to find the motivated sellers. Working with a real estate agent is your first step to finding motivated sellers. They understand the market and can help you spot the best properties and advise you on how to approach the transactions for optimum profit.

Below are some tips and tricks that have proven successful in finding motivated sellers in your market.

• Major newspapers- print ads can be pricey but a classified ad can cost very little and still be very effective. Kooky headlines like “I buy ugly houses” has proven very effective for some major players. Spend some time browsing through your local paper to see what is already being used. Then take those ideas, tweak them, and then use them yourself.

• Thrifty newspapers- every community has them. Penny savers, thrifty nickels, and other local gems can be a great way to reach an untapped market. Best of all, these ads are super cheap. Imagine finding a motivated seller and only spending $20 dollars for a newspaper ad!

• Signage- strategically placed signs on corners can help find motivated sellers where they work and play. You can also place flyers in local supermarkets or anywhere else that people gather together.

• For Sale by Owner Ads- many motivated sellers try to sell their own properties without the help of a real estate agent, in hopes of making a little bit of money off the deal. Consider approaching these individuals with a deal.

• Work the MLS. Junk property, pre-foreclosures, foreclosures, HUD & VA homes can all be bargains. Pay special attention to expired listings and the DOM (Days on Market). Generally, the longer the property has been listed, the more motivated the seller is.

• Talk to landlords. Find motivated sellers by contacting landlords with properties for rent or those that are evicting a tenant. You may be able to strike up a deal.

• Tax & Estate Sales- In the attempt to avoid high property and estate taxes, many sellers will want to get rid of their properties quick. Which can mean a great bargain for you. Divorces are another reason for motivated sellers, as many tend to be emotional and make deals that they normally wouldn’t consider.

• Problem properties. Many motivated sellers are motivated because they have a problem property on their hands. This could include homes with building code violations, health code violations (like mold), condemned properties, or fire damage. While the property may include a little bit of TLC to make them profitable, you can often get really good deals.

• Out of area owners. If the owner of the home has had to move to another city for job or personal reasons, they may be motivated to move their property. Again the DOM will give you a good indication of how motivated they are.

Getting in touch with motivated sellers

Once you know what to look for, you can take the steps to connecting with the motivated sellers on the market. Networking with professionals in your area (real estate agents, lawyers, etc) is one good way to finding motivated sellers. You may be the first one to know about estate sales, divorce properties, etc. Service people are another good resource. Your letter carrier, lawn guy, newspaper delivery person may know more about what is going on in the neighborhood than anybody else. Let them know that you are looking for motivated sellers, you may be pleasantly surprised!

Last but no least- ADVERTISE! Street signs, magnetic car signs, business cards, fliers, and door hangers are just a few of the ways that you can get the word out. Let others know that you are looking to buy property, and work with your real estate agent to find the motivated sellers and make the most of the deals that you find.

Happy hunting!