{"id":8027,"date":"2016-05-24T10:00:52","date_gmt":"2016-05-24T00:00:52","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=8027"},"modified":"2016-05-24T10:00:52","modified_gmt":"2016-05-24T00:00:52","slug":"how-to-check-a-sellers-motivation","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/how-to-check-a-sellers-motivation\/","title":{"rendered":"How to check a sellers motivation"},"content":{"rendered":"

 
\nA person\u2019s motivation to sell is rarely just about financial reasons according to buyers agent Patrick Bright<\/strong>.\u00a0 He joins us to explain how you can spot a sellers motivation and why its important.
\nTranscript –<\/strong>
\nKevin:<\/b>\u00a0 Whenever I ask a seller what it is they look for when they\u2019re looking to buy a property, they always talk about the motivation of the seller. I wonder just how important that is, or in fact, how you can even spot a motivated seller, and what is one anyway? Is it about desperation? Is it about their need to move on or just their desire to move on?
\nMy next guest is a buyer\u2019s agent, and I guess Patrick Bright from EPS Property Search deals with this all the time.
\nHi, Patrick.
\nPatrick:<\/b>\u00a0 Hi, Kevin.
\nKevin:<\/b>\u00a0 Probably a common question you\u2019re asked, as well, about the motivation of the seller: How important is it to know that, Patrick?
\nPatrick:<\/b>\u00a0 It\u2019s helpful to know that you have a motivated seller, but at the end of the day, it\u2019s important to buy from someone who is motivated to sell. There is a percentage of people who put their property on the market simply because they\u2019re just testing the market or they\u2019re not highly motivated or the local sales agent has knocked on the door or rung them and said, \u201cLook, would you think of selling? What are you looking for?\u201d They say this number, and they say, \u201cWell, if I can get that for you, would you be prepared to sell?\u201d and they\u2019re looking to get it on the market. That\u2019s not what I would call a motivated seller.
\nSomeone who is motivated has actually bought something else and they need to sell theirs, and they are happy to listen to fair market value, and they are not going to hang out for a Disneyland price.
\nKevin:<\/b>\u00a0 I think you\u2019ve often said in the past \u2013 and I\u2019ve read a brief on this \u2013 that it\u2019s rarely just about financial reasons that would make someone motivated to sell. Is that correct?
\nPatrick:<\/b>\u00a0 Yes. There are a number of reasons, but I think the top few are if there is unfortunately a relationship breakdown that does happen and people need to separate and move on with their lives and they need to separate the financial aspects of their lives, as well, which is unfortunate but reality.
\nThe financial difficulties as we\u2019ve just mentioned do come into play, but I think the main thing that they\u2019ve already purchased elsewhere is very strong, particularly in a rising market. Most people want to find something before they sell because they know they are going to sell it because the market is tight. So it\u2019s often about finding what they want first, getting that, and then they don\u2019t want to have two mortgages. They have to get on with it pretty promptly because a lot of people can\u2019t fund two mortgages at the same time.
\nThey could be relocating for work. There could be difficult tenants. It could be an investment property and they\u2019re having trouble with a tenant who has gone a bit feral on them. It\u2019s not common, but it does happen. That\u2019s why it\u2019s good to have landlord insurance, of course. But they could be giving them some difficulties, so they\u2019re just over it and they want to sell.
\nThere are a bunch of reasons that people do want to shift a property. What you want to do is ideally buy from someone who is motivated to sell, because they are more likely to listen to a fair market price.
\nKevin:<\/b>\u00a0 How reliable is it when an agent does actually put on an ad \u201cOwners have purchased elsewhere\u201d? As you\u2019ve indicated, that is a good motivator. Things like \u201cDesperate to sell,\u201d \u201cMust sell now.\u201d Are those just marketing ploys?
\nPatrick:<\/b>\u00a0 Absolutely they are. They wouldn\u2019t publish something like that unless there was some truth to that, otherwise it\u2019s misleading advertising. You\u2019re taking a very big risk to be publishing something that isn\u2019t factual.
\nI remember when I was a selling agent 20-odd years ago now \u2013 getting on \u2013 one of the things we noticed was that if you put \u201cHighly motivated seller\u201d or \u201cMortgagee sale\u201d or \u201cDeceased estate\u201d on a property, the amount of extra interest was dramatic. In fact, if you could get away with it you would probably advertise the fact that the property is a deceased estate even though it wasn\u2019t, just to get extra interest.
\nThose properties very rarely sell for a conservative price, because most buyers are doing this for their first or second time, they\u2019re not educated, and they go along and they think it has got to be a bargain whatever it sells for. Some of those properties sell for really silly prices, because you have everyone thinking, \u201cWell, whatever I buy it for, it\u2019s a desperate seller and I\u2019m going to do well.\u201d
\nYou do have to do your own independent research. You do need to make sure that you\u2019re making an educated offer on the property or setting an educated, well-researched limit so that you don\u2019t get caught up being that person.
\nKevin:<\/b>\u00a0 How do you approach that as a buyer\u2019s agent? If it were going to auction and under that kind of duress, would you try to secure the property before the auction?
\nPatrick:<\/b>\u00a0 It depends on the property. I see every property without a price because I\u2019m going to do my research. Prices that are listed on properties are very often what the agent had to promise the vendor to get it on the market or a price that the vendor says they want, which isn\u2019t often very realistic but the agent needs to run with that initially until they get buyer feedback and then educate them on what the market value is. I\u2019ve been in real estate 20-odd years now and I don\u2019t know anyone who has ever told me their home is worth less than I thought it was. I\u2019m unemotional about it, and they are.
\nYou need to get that independent assessment. Do your own numbers, because you don\u2019t want to be influenced. Let\u2019s say they put a million dollars on the property and it may only be worth $900,000. Then someone says, \u201cWell, if I can get 5% off that asking price, or if I can get it for $950,000 I\u2019d probably be getting a good deal.\u201d But what if it\u2019s only worth $900,000? You\u2019ve now been influenced by that million-dollar asking price.
\nIgnore asking prices. Ignore price guides. You need to do your own research. That way, you set your own sensible, well-researched limit. Then if their price guide or whatever guide the agent has provided if there is one being provided, you can factor that in if you want to. But you\u2019ve done your own research separate to that.
\nKevin:<\/b>\u00a0 That\u2019s really good advice: make up your own mind rather than be conditioned by the agent. As you rightly point out, everyone wants more than their property is worth, and that is probably what the pitch price is going to be from the agent because they are working for the seller.
\nPatrick:<\/b>\u00a0 Correct. There are two types of prices that get pitched. There is the Disneyland silly price that gets pitched because that\u2019s what they need to get the vendor\u2019s agreement to get it on the market, or that is what the vendor has agreed to sell at only, so they have to pitch that price. Or you get the underquote price where it is really pitched low to get a lot of interest, but it\u2019s well below where the vendor would really sell at.
\nDo not get caught out being underquoted or overquoted to and influenced by a price. I hear people say this at barbeques and gatherings: \u201cI got a great deal.\u201d I say, \u201cWell, good on you. Well done. Just out of curiosity, what were the numbers?\u201d And they say, \u201cOh, they were asking $1.1 million for it and I wore them down and I got them down to a million and twenty.\u201d The question I would have is was it ever really worth $1.1 million?
\nPeople will convince themselves that they have a good deal when they may not have. On occasion, you might have got a great deal because you have got a motivated seller on the other end of it and that was the best offer they got and they took it and they ran.
\nBy the same token, don\u2019t be afraid of properties that have been sitting on the market for more than six weeks because they get a stigma that they\u2019re stale. They may have had a silly price or they may have poorly marketed or they may have been poorly presented, and people can\u2019t see through that. Some of the best property deals I\u2019ve bought at great prices have been from the fed-up seller, if you like, who has been on the market six, eight, or ten weeks or they\u2019re with their second agent and it\u2019s been listed before.
\nEvery property has a digital footprint. If you Google the address, you could find out historical advertising and you could find out how long it\u2019s been on the market or if it\u2019s been with a previous agent. Then you know the seller is a lot more motivated than they were last time.
\nKevin:<\/b>\u00a0 Some great advice there from Patrick Bright, EPS Property Search.
\nPatrick, once again thanks for your time.
\nPatrick:<\/b> A pleasure, Kevin, as always.<\/p>\n","protected":false},"excerpt":{"rendered":"

  A person\u2019s motivation to sell is rarely just about financial reasons according to buyers agent Patrick Bright.\u00a0 He joins us to explain how you can spot a sellers motivation and why its important. Transcript – Kevin:\u00a0 Whenever I ask a seller what it is…<\/p>\n","protected":false},"author":176692471,"featured_media":8028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,36],"tags":[101],"class_list":["post-8027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-property-investment-topic","tag-podcast"],"yoast_head":"\nHow to check a sellers motivation - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-check-a-sellers-motivation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to check a sellers motivation - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  A person\u2019s motivation to sell is rarely just about financial reasons according to buyers agent Patrick Bright.\u00a0 He joins us to explain how you can spot a sellers motivation and why its important. 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