We often encounter the term “motivated sellers” when we read articles about real estate investing. But what exactly are they and why do you need to find them if you want to be successful in the property investment buying business?

Basically, motivated sellers are home owners who need to sell their property fast. What is important to them is to sell the property immediately. The price is a secondary concern. This means that there is a lot of room for negotiation and that you are likely to get the home at a bargain price.

In any form of real estate investing, it is always helpful if you get the property for a lower price. For example, if you are rehabbing a house, a cheaper property means you can allot more money for repairs and improvement and other expenses. It is also easier to look for buyers if the property is cheap.

Why are these sellers “motivated” to sell their property? You must always ask the seller this question before you buy his property. If he wants to sell it because the crime rate in that area is high, then you better think twice. You are likely to encounter difficulty in finding a buyer for that house even if you bought and sell it for a bargain price.

For the most part, most reasons of sellers are valid. Many of them are struggling financially. They are no longer able to meet their mortgage obligations and feel that it is better to sell the house than see it go into foreclosure. Some of them are undergoing divorce. Others want to move out of the property because a loved one had died there. On the bright side, some people managed to buy a new and bigger property, that’s why they are selling the old one. Many are moving with their family to other places because of a job assignment.

Whatever the reason, you must always approach motivated sellers with caution and sensitivity. A lot of them are facing financing and emotional problems. For those who are selling it to settle mortgage or other debts, losing a home is painful. For divorcees or those who have lost a loved one, they are leaving a home full of both sweet and bitter memories.

The most important thing you need to do is listen to their story first. A good negotiator knows how to listen and uses a tone that will make the seller feel that you want to help them by buying their property. Whether rehabbing, wholesaling, or whatever form of real estate investing, finding motivated sellers is a good way to keep your business running.