How to Catch a Motivated Seller

As a Chatham, Ontario realtor, I have a lot of buyers asking me what a “motivated seller” is, after finding the term in Chatham real estate ads. Their first assumption is generally that these are sellers desperate for a sale, and ready to negotiate. This isn’t always true. Chatham, Ontario realtors ask sellers to put their house on the Chatham real estate market at a reasonable price but many sellers refuse. At this point, listing agents may call the seller “motivated” in order to get buyers to offer lower than list prices. Here are a few tips to figure out if you’re dealing with a motivated seller.

Who Has the Motivation?

It’s not always the seller who is motivated. Sometimes it’s the listing agent, as they are always eager for their listings to sell. Sellers don’t always want to put their home at a reasonable price. To get low offers in order to show the seller a realistic price for their home, the listing agent adds the term “motivated”.

Remember that to get paid, the listing agent needs to sell the home. This means that while negotiating for your dream home, you have an ally. Though the listing agent is working for the seller, they are also working to get paid.

Does Motivated Mean Desperate?

Sellers can be desperate to sell. Listing agents can be authorized to tell buyers that the seller is desperate if the seller has bumped the price down as low as it can go in Chatham real estate without getting a sale out of it. This could mean a few different things:

  • Lower price reductions may be possible
  • The seller could be looking to negotiate before they sell
  • Selling concessions may be in store for the buyer
  • The home in question could be close to foreclosure
  • The seller is trying to get rid of a home in rough shape before harsh weather takes it down
  • The seller is not motivated
  • The seller wants to see an offer before the listing is cancelled

This means it is extremely difficult to understand exactly what the seller is thinking, whether they are desperate or being strategic. Talk to your Chatham, Ontario realtor but my advice is to make an offer on the house if you like it.

Dealing with Motivated Sellers

Deal with a motivated seller as though they are a regular seller. Decide if you want the home, then do a little detective work to understand the seller.

  • Find out why they are selling. Ask the listing agent the reason for the sale. You may be wasting your time if the seller doesn’t have a good reason.
  • Lowball the seller. If you make a lowball offer and the seller doesn’t have a counter-offer, then you’ll know if the seller is motivated or desperate. It’s time to begin negotiations at this point. Check out this article to learn about making offers and negotiating.
  • Research other reasons for the seller’s motivation.
  • Research previous offers. If the seller has rejected offers, find out why and try to outweigh these obstacles.

Navigating Chatham real estate can get frustrating. I can help you not only sell your house, but find your dream home with a reasonable price tag. Give me a call at 519-360-0141 to find out more about me, and a few reasons why I am the best choice to help you in your search for a home.