When looking for vendors when investing in property, it is important to ensure you differentiate between established and struggling investors. When you find a motivated vendor, you won’t have to struggle to convince them to invest in the property. This is because they are eager and ready to dispose of their property.
According to the experts in ‘we buy any house’ firms, Ready Steady Sell, such vendors will usually be willing to sell the property at a discounted price of between 10 to 30 percent below the recommended market value. Additionally, their sale terms are favourable when it comes to various aspects like financing or interest. Motivated vendors will also want to complete transactions within the shortest time possible.
The push behind motivated vendors
Motivated vendors are driven by various factors that include the following;
Relocating. When you land a new job overseas and must relocate, you may be left with no choice but to sell your property. Unfortunately for most people, there’s usually not much time to go through the process of selling property on the property market hence the willingness to sell fast for less, if only to be free.
The threat of repossession. Tough economic times could result in the threat of having your property repossessed. This will often have a far-reaching impact because you can no longer keep up with the repayment of your mortgage among other financial obligations. Hence, you have no choice but to sell the property fast.
Life’s circumstances. Going through a divorce or separation could have adverse emotional outcomes. Yet, at the centre of it may be the property that is shared. Hence, the best move would be to sell it so that you can part ways with your ex-partner. This also applies in other situations like dealing with probate property.
Inability to manage the property. It is not surprising to find that property is neglected with so many things falling apart. If the owner is unwilling to invest in repairs and renovation, they could instead opt for a quick sale on an as-is basis. As any property valuation book will highlight, however – your initial estimates for repairs could be grossly below the mark, so ensure you leave a buffer.
How to Find Motivated Vendors
- Look around the neighbourhood
Although this may sound unrealistic, you will be surprised at the discovery you can make by simply taking a drive around your neighborhood. The common signs you need to look out for include piles of newspapers in the driveway, empty lots, a lawn that is neglected, property that is run down and a ‘For Sale’ sign.
- Estate Agents
Estate agents are a great link in helping you find motivated vendors. They can leverage their large network of professionals that they work with through the platforms they interact with to give you some great leads. Even then, you must do due diligence when dealing with estate agents to make sure that you are dealing with a trustworthy one.
- Network with Solicitors
Solicitors will most likely know about motivated vendors because they are always engaging clients who want to sell their property fast. Whether the sale is motivated by a divorce, bankruptcy or probate, you can be sure to get some good leads from solicitors. Even then, you must keep in mind that not all solicitors will have this information therefore, focus on those whose area of practice is property law, family law, probate law or bankruptcy law.
- Expired Listings
Expired property listings may be a goldmine if you are looking to invest in discounted property. Property investment courses often point to expired listings as one of their ‘secret techniques’. When listings expire either because of poor showings or unfinished project, most vendors will want to avoid the stress that comes with re-listing the property. Instead, they will willingly make some concessions to their price and terms just to get the property off the market. You can work with an estate agent to identify those listings that are expired.
- Quick House Sale Companies
Quick house sale companies will often have a link to motivated vendors whom they can easily link to cash buyers. Therefore, you could consider talking to quick house sale company experts to link you to vendors who are ready to sell their houses fast for less.
The thing about motivated vendors is that you don’t have to worry about being in a chain because they want to dispose of the property fast. Therefore, it is unlikely that you will face resistance if any. However, you must always ensure you protect your interests by doing due diligence so that you don’t end up getting the short end of the deal. Most importantly, make sure you involve your solicitor to ensure there are no legal breaches.
Remember, we encourage you to perform full due diligence before making an investment. People often assume that property is a safe investment because it’s more tangible than an stocks & shares ISA, but it can often present a similar level of risk, particularly if you have no diversification.