Welcome back to the channel, everyone. This is Nathan Payne, I’m coming to you excited for today’s topic, guys, I’m going to talk to you about what the heck is a motivated seller? What makes someone motivated to sell their home? Stay tuned
by the end of this video, you’re gonna know exactly what makes a seller motivated to sell their home and what that even means motivation. What does that even mean? Check it out, I got a great tip. So stay tuned, because I want to let you guys know how you can really identify a motivated seller or not. Today, you’re going to learn why a seller would even be motivated to sell their home. Also, what does that even mean? If you’re working with a motivated seller? Also, do people take advantage of people that are motivated that need to sell their home? Is that something that happens? And how can you work ethically with someone that is motivated to sell their home? So let’s dive right into everybody? What is a motivated seller? What is the definition? Well, I mean, really a motivated seller, it’s pretty simple. It’s someone that’s motivated to sell their home really fast or quick. And it all it doesn’t all always have to do with distress and financial problems. It can be just someone that doesn’t want to waste their time, or their energy or their mind, or the thought they just could be a burden to them just because they don’t really want to think about it. But a motivated seller is someone that just wants to sell their house. Quickly. Fast, easy.
So what are the four pillars of motivation? What causes a seller to be motivated to sell their home? Well, what you need to look for is number one is timeline.
Okay? How fast do they need to sell? When do they need to get it done? Is it 90 days? Is it seven days is it in a year knowing a seller’s timeline will let you know exactly if they’re motivated or not. If they’re not motivated, they’re probably not going to have a timeline, that’s very quick. But if they’re like, hey, I need to sell this house in 14 days. Well, that’s that’s a lot of motivation. Another pillar of motivation is the condition of the property. Most of the time, if the seller wants to sell their house quickly, it can be due to the fact that their house is in terrible condition, it needs a lot of work, or maybe they just don’t even want to do the work. And they’re just motivated to get rid of it. For example, if you have a house that has a leaky roof, and you don’t have the money to repair it, and you just want to get out of there, you’re tired of that leaking, and you think it’s going to cause more problems.
There you go. That’s, that can cause motivation, because of the distress of the property, or the house keeps on breaking or like leaking, or there’s problems with electricity, there’s problems with the plumbing, that can cause a salary motivated. So we’ve already gone over timeline timeline will cause someone if they need to sell quickly, they need to get it done. That’s motivation or condition of the property. They’re worried that you know, if they don’t do the rehab, or they don’t fix the property, if they don’t have the money to fix it, it’s gonna get in worse condition. And they are they’re just tired of it is condition condition is another one of the motivating pillars. Okay, another one of the pillars of motivation.
Well, guys, it’s it’s pretty simple. I mean, it’s redundant. It’s motivation. Why do they want to sell when I talk to sellers, the first thing I ask them is, what’s got you interested in selling? What’s motivating you to? So I don’t say motivating, I just say, why are you selling or what’s got you interested in selling? This sounds like a great house? What’s the reason? And that is probably the one of the most important questions to ask a seller to find out their motivation is why are they selling? Are they selling because they need a move? Are they selling because they’re out of money? Are they selling because there’s a death in the family and they have this property they inherited, they just want to get rid of it.
There’s so many things that can motivate someone to sell. And it can it can be things that wouldn’t even motivate you sometimes, like I talked to this one guy that had a million dollar property, and he had all the money in the world. He didn’t need to sell the house, but he wanted to sell because he was just a burden for him. He just didn’t want to think about it anymore. For me, I’m like, wow, I got a million dollar house. How is that a burden? For him? He’s just like, Look, I just want to get rid of it. That’s, I don’t want to think about it. I just want to get it off my books. And you know, that was motivation for him. So again, out of the four pillars, we’ve talked about three you got timeline, you got condition, and you have the reason why they want to sell motivation. Okay, now the last pillar that we’re gonna go over the fourth one, it is a kind of interesting pillar, because this doesn’t always determine motivation.
But I would say price, if a seller you’re talking to a seller, and they already you ask them what they want for the house, what they’re willing to take for it, if you bought it, and they give you a low price, that’s usually determines motivation, if they’re already in a range where it’s low, and they they understand that it’s low, maybe they’ve talked to a lot of people before and they just want to get it done. They’re not trying to mess around and play around and ask for a high price. They’re just like, Look, if you give me $100,000 I know that that property is worth 250 Just give me 100,000 And I’ll be done. Then you can ask like, oh, wow, you’re giving me a great deal. Like, you know, what’s, what’s going on? So asking the price is can be a good motivation factor, but not always guys, that’s what I’m saying can be a flip flopper when a seller says let’s say the house is worth 300,000 And they asked they asked you for 350 400,000.
Don’t let them say that they want more have money for the House to turn like deter you. Because guys, I just did a deal on the market, they listed the house for 450,000. It was $140,000 more than what we got it for eventually, once we were able to negotiate, but the house was way, way listed way higher than it was supposed to be. So if you would have looked at that deal and said, they’re not motivated, they want way too much money wrong, they were super motivated, they were just trying to get as much as they could. So price, don’t let it stop you from seeing motivation, it can help. But it’s not always the the kids not always going to determine that. So let’s go over the four points. So a lot of people are probably concerned that wholesalers, real estate investors take advantage of motivated sellers. But what I gotta tell you guys is, you know, you can take advantage of anyone in any industry, but you just have to be honest, transparent and treat people like you’d want to be treated.
So, you know, if people are like, Oh, how do you sleep at night, you’re a wholesaler, I sleep great at night, okay? Because when I talk to sellers, I give them all their options, I let them know, Hey, you should list this, you should flip this, you should do this. And they should do that. And my cash offer is always the last option for them. Because I think cash offers are probably one of the lowest on the tier of what things that can benefit a seller. I mean, unless they are super motivated and you get done, then it is super beneficial. But I always present tons of options. So when people say hey, can you you’re taking advantage of motivated sellers? I don’t. But I mean, obviously, like I said, a lot of people can, but you can take advantage of anyone in anything. If someone says, Hey, I’ll take 150 for this house, and it’s worth a million. I would say, wow, you’re giving me a great deal. You know, your house is worth more what’s going on? But if someone just says, Yeah, okay, great. Let’s sign it. And then that’s fine. And then they can do whatever they want. But for me, I can usually tell if there’s something going on, I call it out because you know, maybe the house is about to blow up.
And, you know, I want to know why there’s such a good deal on it. But yeah, anyone can take advantage of anyone. Don’t do it. Be honest, be true. Treat people like you’d want to be treated. So again, when people say hey, you’re a wholesaler, you take advantage, people will be like laugh at that because you’re like, I don’t do that a stupid. Before I move on to the next point, I want to give you something that I’ve spent a lot of time building. And I think it will really help you as a real estate investor and wholesaler, I’ve created what’s called the Payneless Wholesaling mindmap. And what it does is it lays out exactly how to do a deal from step one through 10. And it goes really in depth. And especially for what we’re talking about finding motivated sellers, I have a process in the mind map that goes over the sales process and how to identify what a motivated seller is, I have a document that actually explains exactly what sellers would be motivated in what situations. So I want you to check it out. Because it’s absolutely free.
I want to help you get it and improve your sales skills. So check it out. So I want to tell you now that we’ve talked about the four pillars of motivation, and what makes a seller motivated, I want to tell you the best way to deal with motivated sellers, okay. And this has a little bit to do with reverse psychology has a little bit to do with, you know, not being the needy investor. But being the reluctant investor, and what I call it guys, it’s called presenting options to sellers.
I know it’s crazy. When I first started doing sales, when I was doing door to door sales for six years selling Dish Network. My goal was to knock on someone’s door and convince them to buy DISH Network buy, because it was a better deal for them. And I had like an hour or I had 30 minutes and I had that day to get them to buy it because then I was gonna move on to the next door and the chances of them buying it later would be very slim. So my goal was to convince people get in, get out be quick. But ever since I went to doing deals in real estate, it’s completely different. You cannot convince someone to take your low cash offer and you can’t force them to do or say hey, I’m about to leave the area of my trucks. I sold this network so our spill it’d be like hey, our trucks are in the area. Anyone that signs up they’re getting a get a fee waived for getting the installation fees gonna get waived because it’s a lot cheaper since our trucks are here.
So people think oh, wow, okay, your trucks are in the area, then we can you know, I want to take advantage of that. But you can’t really say that with buying houses you can’t be like, Hey, I’m only buying houses in this neighborhood today or you know, this week. So what I had to learn is not to be to do the true way of sales and the true way of sales is helping the seller understand their options and helping them find out which one is the best for them. So when I talk to sellers what I do is I lay out all the options they have to sell their home. I say hey, look, I understand you’re trying to sell your home Have you considered listing it already? And they say yeah, I have thought about listing it but I don’t really want to I don’t want to have to hassle with this. I need to sell this quickly. Okay, okay, so you need to sell quickly so listings it listing is out of the question.
Okay, it’s just x that option out now have you thought about keeping Can you keep it Can you rent it to maybe a family friend? Can you stay here? Is it an option just to stay here? Oh, you know, it’s not an option. I can’t afford the payment and I don’t want to hassle the renters. Okay. Okay, so we’ve exited out renting it you don’t want to keep it you don’t want to rent How about flipping Can you flip it? Because if I flip it I’m gonna make the most money possible. And you know, that’s what I do for my job is I buy homes and I flipped them to make money. You can make that money to Mr. Seller, Mrs. seller, and they say I don’t have the money to flip it.
I don’t have the time, the energy the money and cuz I explained to them if they flip it the cost and how much how long it will take. They most of the time they say, I don’t want to flip it, I say Okay, so we’ve talked about listing it not a good option keeping it or renting out not another not not something you’re interested in, in flipping it, you don’t want to do it. So that kind of leaves at the moment, Mister Mister seller, the cash offer. Now, I will tell you that my cash offer it is because I buy it for cash, buy quick, there’s no fees, and we can get it done fast. That’s the lowest offer you can really get is is that are you sure that’s something you want? If we can get it done for you quick? In they say yes, that’s something I want. And then obviously, among cash offers, you have seller finance offers that you can negotiate doing terms and stuff. But basically, I walk people back into the cash offer I have, because I’m just like, hey, are you sure? I’m never here to convince someone to take a cash offer. I’m here to help you know your options. I’m like a deal engineer or consultant. And that’s the way the right way to do deals. No matter what you do. You got to show people what there is available to them and help them make the best decision for them.
So if you want to work with motivated sellers, and be ethical and do it the right way, present them all their options and let them decide what’s best for them. And no matter if listing is the best option for them. Go ahead, if you’re an agent, you can help them or if you know agents you can refer. So there’s always ways you can benefit people. Or if they want to flip it say hey, let me give you some of the contractors I use. You can provide value to them and who knows maybe they’ll work with you in the future. What you have to do is when you’re working with people, you have to look at the Win Win scenarios and help them achieve their goals. Because it doesn’t matter if it benefits you in the moment.
You’re helping people succeed and that’s what matters. So that is how you deal with motivated sellers ethically in the right way. Go check out my video on how you can improve your sales skills in real estate so you can learn how you can make more money and maximize your income.