Estate agents need clients, and you need to understand what motivates people to sell in order to find owners who will list their properties with you. Be on the lookout for any of these things happening in your neighbourhood or among your network of family, friends and previous clients.
The most common motivators in the current market are:
Risk of foreclosure
In a struggling economy, a significant number of sales are from what is known as distressed properties. Many homeowners find themselves with a mortgage they can’t afford either due to job loss or increasing monthly payments, and it is far better for their credit record to sell quickly than to face foreclosure.
Sometimes people who have to move for family reasons or to take up a new job offer will need to sell their current home. Very often, these sales will need to happen in a hurry, so you’ll need to be alert to the opportunity.
Baby Boomers are entering retirement and are faced with empty nests. Typically, they are looking to sell in order to find a home that’s smaller or more manageable.
People who are starting families or newlyweds may want a change from their downtown loft apartment to a small house or home in an area that can accommodate children, with schools and different amenities. They will be looking to sell for a good price.
People who are in need of money will be looking to sell their home as an asset for the largest amount of profit, but may have time pressures on the sale.
There are people who are always buying and selling properties. Keeping a few of these investors permanently on your contact list is a great idea. Investors will sell in order to buy another property, to realise a profit and raise cash, or to avoid further losses on depreciating values.
Keep an eye out for families who have frail, elderly grandparents or disabled relatives. They may need to sell their current property in order to move to one that can accommodate their particular needs.