Sal Vannutini is the author of " The 8 Power Profit Secrets To Making More Money With Less Risk In Real Estate, " a free strategy report for investors. Get your complimentary
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There's no doubt about it, people sell and purchase fixer uppers all the times. Some are extremely successful in their efforts and many set themselves up for failure with the very first transaction. In this article, we will discuss five of the most common reasons why sellers offer fixer uppers for dirt cheap. By understanding their motivations, you'll be better able to negotiate from a place of power. So, let's get started.
5 Common reasons why sellers might sell for cheap:
1. The property is n poor condition and the seller isn't interested in fixing it up. It could be that he doesn't have any money, has lost interest in the property, purchase more property than he could handle, etc. Either way, the property is run down and needs a bit of TLC to bring it up to par with other comparative properties in the 'hood so this seller is offering it at a discount because he isn't interested in making the repairs.
2. The seller is in a bad financial situation and can't afford to keep the property. In this instance, the seller can't make the mortgage payments and is facing credit ruin or facing foreclosure. In this instance, the seller needs a quick sell in order to dig himself out of the hole he has currently dug for himself.
3. The property is in a bad location or is not marketable due to its size. That is, if the property is in a bad location, the seller is having a hard time getting tenants because they simply don't want to live there. If it is an undesirable size, like a studio or 3 bedroom with 1 bath, then it might also be undesirable for sellers or renting so the seller hopes to unload it.
4. The seller is undergoing legal problems. In this instance, he might be late on his property taxes or might have failed to pay his second mortgage so there is a lien on the property. In this instance, he is looking to sell it quickly so that he can find a way out. However, these legal liabilities could very well be passed on to the new owner.
5 The seller is going through a nasty divorce. In this instance, the seller may just want out or hopes to sell the property so that he can split the profits with his ex quickly. In this instance, he also wants to sell quickly to simply get out.
In conclusion, there are many reasons why a seller might sell quickly. However, to make sure that you don’t get stuck with a worthless piece of fixer upper property, you must determine the seller's motivation for selling the fixer upper in order to figure out if it is a good idea to purchase it or not. If it isn't, move on, there are more fixer upper fish in the sea ready for picking.
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