Assessing the Seller's Motivation
The most common "motivated seller" is someone who has already bought his or her next home or is relocating to a new area. They will be under the gun to sell the home quickly or face the prospect of making two mortgage payments at the same time. Since that can drain a bank account quickly, most sellers want to avoid such a situation and may be willing to reduce his price below what other similar type homes are listed for. Sometimes the savings can be significant.
There are also family crises that can motivate a seller to make a quick deal. However, when you see a real estate ad that mentions "divorce," "motivated seller," "relocation," or something to that affect, beware. Although the facts may be true, that does not necessarily mean the seller is motivated to make a drastic reduction in price. Sometimes, however, the seller is very motivated to sell quickly and at a notable discount. Do not be influenced by a seemingly high asking price in determining what your initial offer will be.
There are times when a seller is truly distressed, willing to make a quick sale below fair market value and sacrifice many thousands of dollars. With the seller’s permission, the listing agent will post this information along with the listing in the Multiple Listing Service. They may also inform other agents during office and association marketing sessions or by flyers sent to other real estate offices. Provided this information has been made generally available to Realtors, Buyer's Edge Realty will know when a seller is truly motivated and when it is just "puff" designed to elicit interest in a property.
The exception is when an agent is selling a home they have listed themselves, or is selling a home that was listed by another agent from their own company. In such a situation, the agent may be acting as an agent for the seller, or as a "dual agent," representing both you and the seller - an obvious conflict of interest. In such a situation, they cannot legally provide you with negotiating information that would give you an advantage over the seller. You are on your own to negotiate price and terms.
Next Topic - Making the Offer
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