The most common reasons today to motivated a
seller to offer a better than normal, or reduced price on their home, or condo,
or any kind of real estate falls into 3 distinct categories.
Most often this is related to employment.
If a person is transferred, from one area of the country to another
they normally have to sell their present home in order to have the
down payment on their new home. They may be willing especially in
today's market to give up some of their equity to facilitate a fast
closing. To get this kind of deal you, the buyer must be liquid and
able to close quickly. The way to do this is be pre-qualified for
a mortgage, have your estimated closing costs ( such as down payment
if needed) on hand.
The good side is these deals are usually on
well maintained homes, in good neighborhoods,and have less chance
of tax liens, or other liens that could effect you receiving a clear
The pit falls are also the timing, you will
need an real estate agent (like us) who has good relationships with
home inspectors, to get them out quickly. You also need to able to
make your decision quickly, so work closely with our agents who know
the market, and know the neighborhood that the home is located in.
They can't keep up with their
is an interesting opportunity. Many of these sellers are in a real bind.
They need a quick fix. Some times you can take over their existing mortgage,
but if it got them in trouble, most luckily it is not a good deal for you
either. But, that doesn't mean you can't negotiate with the existing bank
to make a better deal. If there is equity in the property the seller is
more willing to give it up, to make the problem go away.
The pitfalls here can be liens on the property other than the mortgage
holder. Also if they can't pay their bills they certainly have not kept
the property up.
Probate sale.This is
a real good one to look out for. If a property is part of a will, and given
to more than one person it is sold and the money is split among the beneficiaries.
In this type of sale the parties may be willing to forego some equity for
a quick sale, epically if the probate attorney is managing the properties
for them eating up the equity in charges for services . Usually these properties
are well maintained, and have no liens on them.
They didn't keep it up.
These sellers are ones who have let the property
go, and just don't want to deal with it anymore. These properties are what
house flippers are looking for. They know it needs work, and understand the
process of bringing it back to current market condition. The pitfalls are
many and you can read more about these home on the House