How to Determine a Seller's Motivation

If you want to know how much to offer on that home for sale, look at how motivated the seller is.

Difficulty: Moderate

Instructions

Things You'll Need:

• Real Estate Agents

1. Ask the home owners about their reasons for selling their home, or ask your agent to find out for you.

2. Ask your real estate agent to check the Multiple Listing Service (MLS) for indications of why the home owners are selling, such as a job transfer or the purchase of another home.

3. Realize the home owners may not have time to wait for the highest offer if they want a fast sale for reasons such as a job transfer, the purchase of another home, financial difficulties, divorce, death of a spouse or an extended illness.

4. Determine how the home owners' motives for selling can benefit you during the sales transaction, such as a reduced sales price in exchange for a quick closing.

Tips & Warnings

• The sellers' motives may allow you to negotiate other favorable terms in a purchase contract besides price, such as seller-backed financing.
• Be aware that some sellers are reluctant to reveal their motives for fear buyers may take advantage of their situation, especially in distress situations.