How to Prepare for A Meeting with a Motivated Seller

Going to a meeting with a motivated seller is one of the most important aspects of real estate investing. Being prepared for the meeting is essential for your success to close profitable deals.

What is a Motivated Seller?

A motivated seller is someone who needs to sell their house quickly. It might be for financial reasons, like not being able to make the monthly payments, or for a major life change like relocation, divorce, or death in the family. 

This type of seller is someone you can help with the real estate investing methods I teach while making a profit for yourself and building financial security. 

What to do Before Meeting with a Motivated Seller

Prescreen the Seller

The pre-screening of a potential seller takes place on the initial phone call. Getting the right information on the call can help you decide if there is potential for a deal that will help them and be profitable for you. If there is a possibility for a deal, then you can make an appointment to meet face-to-face.

Questions to Ask the Seller

The main questions you want to ask on the call include:

• How soon do you want to close? 
• Why are you selling? 
• How much do you owe? 
• What is the condition of the home?
• How much do you want? 

It is also helpful to use a phone form, which I offer in my Foreclosure Investing Mastery course, to make sure you are gathering all the information you need. If you find it is a deal that could be profitable you should make the in-person appointment. But, before you go on the appointment you need to look at the financials.

Know Your Price

After you set the appointment, it is time to look at the price. Don’t spend too much time on this aspect of the deal until you actually have an appointment set up with a viable seller. The goal is to get the lowest price possible.

Fair Market Value

The fair market value (FMV) is the probable amount the home would sell for in normal market conditions. I always suggest taking a conservative approach to the FMV, especially when first starting out in real estate investing.

Appraisal

A common way to determine the market value of a home is to get an appraisal. Usually, I don’t recommend this unless you are just starting out and aren’t confident you can come up with an accurate FMV or if you are working with a lender that requires it. 

For an appraisal, a certified inspector will come to the property and give their estimate for the value of the property based on what they see and after evaluating comparable properties. The cost can range from $300 to $500. 

Visual Inspection

If you are going to determine a FMV on your own, you start by looking at the property you are valuing. If this is before the meeting, it can be by driving by or looking at pictures.

Comparable Sales

Next, when determining the FMV without an appraisal, you should look at comparable properties that have sold within the last 3 to 6 months. The homes should be similar in size and year built, and also be in the same neighborhood, if possible.

If the home has other amenities, like a view, a pool, or on a large lot, this is also something to account for in the FMV.

Get the Data

To help find information on comparable properties you can use the Multiple Listing Service (MLS) or real estate data services. There is also an online tool called ProfitGrabber that offers the Ultimate Data Source and has features to help you calculate the FMV of a property. 

Once you have this information, you can move on to consider an exit strategy, meet with the seller, and close the deal.