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How
Seller Motivation Affects Your Offer Price
Truthfully, it is rather
rare that a seller’s motivation will dramatically affect the price of
a home, but it is often possible to save a few thousand dollars. The
most common "motivated seller" is someone who has already
bought his or her next home or is relocating to a new area. They will be
under the gun to sell the home quickly or face the prospect of making
two mortgage payments at the same time. Since that can drain a bank
account quickly, most sellers want to avoid such a situation and may be
willing to give up a few thousand dollars to avoid the possibility.
There are also family
crises that can motivate a seller to make a quick deal. However, when
you see a real estate ad that mentions "divorce,"
"motivated seller," "relocation," or something to
that affect, beware. Although the facts may be true, that does not
necessarily mean the seller is motivated to make a quick and costly
sale. Most likely, the ad is more designed to generate phone calls and
leads rather than sell the home.
However, there are times
when a seller is truly distressed, willing to make a quick sale and
sacrifice thousands of dollars. With the seller’s permission, the
listing agent will post this information along with the listing in the
Multiple Listing Service. They may also inform other agents during
office and association marketing sessions or by flyers sent to other
real estate offices. Provided this information has been made generally
available to Realtors, your agent should know when a seller is truly
motivated and when it is just "puff" designed to elicit interest in a property.
The exception is when an
agent is selling a home they have listed themselves or selling a home
that was listed by another agent from their own company. In such a
situation, the agent may be acting as an agent for the seller, or as a
"dual agent," representing both you and the seller. In such a
situation, they cannot legally provide you with information that would
give you an advantage over the seller.
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