Home Seller Mentality – What To Watch For

Posted by kirk on Jan 23, 2012 in Home Buying | 0 comments

When you are looking to buy a home, you want the best possible deal. Who wants to pay more than they have to? When doing that, it’s important to know which type of seller you are dealing with. Is this a Non-Motivated Seller or is this a Motivated Seller?

The Motivated Seller

Most sellers are motivated. Many sellers are in this boat: They owe more on their house than what it is worth, so unless they continue to make payments on it for the next 7 years they will continue to lose equity. Interest rates may have been very high when they purchased, so unless they’ve refinanced they want to go get into a home where they are not paying a hefty mortgage.

How you can tell if the seller is motivated.

• These homes are priced low.
• The longer a home has been on the market, the more desperate they have become.
• Homes which are typically on the market for more than 180 days increases the anxiety of the seller.
• Less offers are made during the winter, so sellers are more motivated during the cold seasons.

The pluses and minuses of a motivated seller. Motivated sellers are generally great things for buyers. In most cases a motivated seller will pay all of your closing costs for you, and they may even drop the price more. Make sure you consider that when writing up your offer. The motivated seller may leave things (furniture, fridge) behind which will entice you to buy. One downside of a motivated seller may be the condition of the home, and

The Unmotivated Seller

If you come across an unmotivated seller, you may want to move on from this property. Chances are that you will pay to much for the home and that you may end up being very unsatisfied with your purchase, as deadlines may not be met and the purchase will be long and drawn out. Unmotivated sellers are placing their home on the market with the hopes that some naive buyer will be enticed to their home and pay a price which is far above what the buyer should actually pay.

How you can tell if the seller is unmotivated.

• The place is occupied and already giving them money.
• They have already refused previous offers.
• The home has been on a market for a long time and the price has never come down.
• There is nothing on the exterior of the home indicating the house is for sale.
• Priced far above what the market says it should be priced.
• When you work with an unmotivated seller, you might ask yourself a few times “do they really want to sell this home?”

The pros and cons of unmotivated sellers.

Here there are very few pros. The one big one that stands out is that it will make you question your desire to purchase this property, and you may move on and find an even better deal. Unmotivated sellers are unwilling to negotiate.