In the dynamic world of real estate investing, the ability to identify and capitalize on motivated seller leads can make all the difference between success and stagnation. As an investor, your goal is not just to find any seller but to target those motivated to sell quickly and potentially at favourably terms. Searching for seller leads can be quite a challenging and crucial step in real estate investing, but it is not to be neglected. What exactly defines a motivated seller, how to get real estate seller leads, valuable insights for generating real estate motivated seller leads, and a cherry on top of the cake—exclusive questions for negotiating with seller leads— about these and other aspects read in our overview.

What is a motivated seller lead?

Motivated leads usually consist of sellers that have urgent needs for selling their property. In most real estate dealings, this is usually the case wherein motivated sellers will accept lower offers because they do not have the comfort of time to attract multiple buyers and get competitive bids for their house.

With OfferMarket, you get in contact with motivated house seller leads and compare AS IS offers from cash-verified buyers to be able to provide a fair competitive price while closing quickly.

Motivated Seller in real estate: How to Find Them

• People become motivated sellers for many reasons, including but not limited to the following:
• Divorce or separation
• Financial problems (such as losing one’s job or bankruptcy of a company)
• Medical treatment expenses
• Transfer to another location in the country due to one’s job

Inheritance and liquidation of estates

OfferMarket is the marketplace for property investment, where you could find motivated home seller leads to compare AS IS offers from verified investors. Subscribe to the exclusive, off-market deal flow of OfferMarket to see how to find motivated home seller leads to directly access.

Think about when you’re rushing to sell something, like a bike or a car because you need the cash fast or you’re moving out soon. You might be willing to accept a lower price just to get it sold quickly, right? Well, that’s similar to what a motivated seller is doing with their house. They’re eager to sell fast, maybe because they need the money urgently or must move soon.

Now, on the flip side, you have real estate investors. These folks buy properties to make money, whether by fixing them up and selling them for a profit (flipping), renting them out for regular income (buy-and-hold), or selling the deal to another investor for a profit without doing any work themselves (wholesaling).

Real estate investors are always on the lookout for good deals, and motivated sellers are like gold mines for them. By finding these motivated sellers at iSpeedtolead at competitive prices, investors can negotiate a lower price for the property, which means they stand to make more money when they sell or rent it out later. 

So, when we talk about real estate seller leads, we’re discussing motivated people looking for opportunities to buy properties and snag a deal quickly and profitably. According to BMO, 54% of motivated sellers can expect to receive offers within three months of initially listing their homes. 

Types of Motivated Seller in real estate

Real estate seller leads can come from diverse backgrounds and situations. Some common types include distressed homeowners facing financial difficulties, landlords looking to offload underperforming properties, individuals going through life-changing events such as divorce or inheritance, and absentee owners who cannot manage their properties effectively from a distance. Understanding the various motivations behind selling can help you tailor your approach when targeting these sellers.

Absentee Owners

This type of motivated seller leads, used to not dwell at the property. Usually, they live in another county, another state, or even another country. Subsequently, if they do not live in the home, they are deprived of an emotional connection to it and are eager to sell it without hesitating. Sometimes, they entrust the house to their friends or relatives, which can lead to additional stress and issues arising for the owner. Instead of dealing with that hassle, they are likely to get off the burden and sell the house for cash quickly.

Expectant Couple

As the family expands, so do the needs. Parents-to-be typically aim to relocate to a larger residence, crafting a comfortable and fitting home atmosphere for their forthcoming baby. Typically, they strive to sell their homes as soon as possible because of upcoming gender reveal parties, baby showers, medical consultations, etc. They’re willing to price their homes below market value, and investors can step in to help them navigate a smooth and stress-free selling process.

Struggling Homeowners

People who have recently lost a family member, those experiencing a divorce, or those with dead-end jobs simply cannot afford mortgage payments. Therefore, they consider selling their homes as a problem-solving step.

Retiring investors

Real estate investors retire for various reasons, whether to cash in on their investments, avoid property management hassles, or pursue new ventures. Some may sell because their properties have peaked in value, while others may struggle with maintenance costs. Retired investors often aim to sell quickly, and networking with other investors can open doors to potential selling opportunities in the market.

Owners Facing Foreclosure

Homeowners in foreclosure constitute a sizable portion of motivated seller leads. Amid financial strain, they opt to sell below market value to protect credit, aiming for mortgage debt forgiveness. Often experiencing major life events like job loss or bankruptcy, they seek speedy solutions. Investors can aid by offering quick property purchases, bypassing repairs, and providing upfront cash. This helps homeowners salvage funds, preventing total losses and potential credit damage from foreclosure.

Owners Experiencing Relocation

Homeowners considering relocation could be prime candidates for real estate investors seeking motivated seller leads. Relocation often stems from various factors, such as job opportunities, significant life changes, or the aim to avoid managing two mortgage payments simultaneously.

Senior Homeowners

Senior homeowners who have owned their homes for 15 years or more are ideal candidates for your marketing campaign. Many of them are looking to downsize or transition to assisted living. Often, these homeowners haven’t made many updates or renovations to their homes, and there may be deferred maintenance issues. This presents an opportunity to purchase their homes at a lower price, making them motivated seller leads for real estate investors.

Owners of Damaged Dwelling

In the US, a number of houses have been hit by natural disasters in the last few years. The disappointing thing is that many home insurance policies don’t cover all types of natural damages. For instance, when disasters strike, homeowners find themselves in tough spots. They’ve faced expensive repairs or might want to leave a risky area altogether. The main goal is to support homeowners currently going through tough times and have a deep understanding of the situation. 

Owners with Liens

When homeowners fall behind on their property taxes, the county can step in and place a lien on their property. This basically means that the county has a legal claim on the property until the taxes are paid off.

To settle the unpaid taxes, the county often puts the lien up for auction, selling it to the highest bidder for the amount owed. The homeowner then has a limited time to pay off the taxes, plus any interest, to reclaim their property. If they can’t pay up, the investor who bought the lien might end up taking ownership of the property. 

This puts homeowners in a tough spot because they risk losing their property if they can’t clear the taxes. In such a situation, homeowners have two main options: sell the property quickly for a lower price to at least get something out of it, or let the property go and walk away with nothing. 

Given the urgency and pressure, homeowners in this position are usually very eager to sell and may agree to lower prices. Learning how to find properties with tax liens can be valuable for investors looking to seize these opportunities.

Tax Debtors

When property owners fail to meet their annual property tax obligations, their county can place a lien on the property, which is then auctioned off to the highest bidder. If the taxes remain unpaid, investors can acquire the property. Faced with the threat of losing their home, owners become highly motivated to sell. They may choose to sell quickly at a reduced price to avoid foreclosure. These sellers are eager to negotiate and are prime targets for investors seeking bargains. Researching properties with tax liens can help identify these motivated sellers. 

 Common Signs of a Motivated Seller in real estate

Now that we’ve covered who motivated sellers are and the various types they can fall into, let’s delve into how to identify them and ultimately secure a deal. 

• Significant life challenges. When the owner is facing significant life changes like job loss, the loss of a loved one, or going through a divorce, it can often indicate a strong motivation to sell their property. These circumstances can create financial pressures or emotional strain, leading the owner to seek a quick resolution, which may translate into a willingness to negotiate on the sale of their property.
• Owners eager to downsize. Many individuals seeking to downsize yearn for a simpler lifestyle. They aspire to transition into a smaller home that requires less maintenance, feeling burdened by the upkeep demands of their current residence. These homeowners often seek to sell their property in its current condition for a cash transaction.

• House that has been listed on MLS for quite a while. Having been lingered on the MLS for an extended period, up to 8 months, it means that the house is likely to have issues. Therefore, the owner could be inclined to sell the house quickly for cash.

• Owners who calling a spade a spade. If the seller comes clean about the property’s issues, it indicates a genuine willingness to negotiate. Conversely, if they skirt around discussing the property’s shortcomings, they may still be holding out for top dollar.

• Always on the go. The seller’s relocation out of state or abroad signifies a desire to avoid absentee ownership, where the owner resides in a different location from the property. In such cases, especially if the property remains vacant, owners incur expenses like property taxes without generating income. Hence, they often seek to swiftly sell off the property.

• Keywords in the advertisement. If the listing contains such words like only cash, motivated seller, buy house as is, bring all offers, provide valuable insights into the seller’s mindset  and urgency regarding the property sale. 
• The home is being listed as an estate sale, managed by the REO department of a bank, or slated to go up for auction. In these scenarios, the sellers are typically looking to liquidate the property swiftly and may be more open to negotiation to expedite the process.

How to Find Motivated Seller in real estate for Real Estate Investors in 2024?

In the world of real estate lead generation, finding motivated seller leads is like uncovering hidden treasure. While it may seem challenging to locate these elusive leads, there are practical guidelines that real estate agents can take advantage of to reach out to seller leads.

• Spot a Relevant Motivated Seller in real estate Targeted List

For investors looking to ramp up their marketing efforts to reach home sellers, the key lies in sourcing targeted lists of motivated sellers. These lists can serve as the foundation for your marketing strategy, typically involving direct mail campaigns designed to prompt them to get in touch with you or your team. Above, it has already been mentioned what types of motivated sellers you may stumble upon.

• Marketing Collateral Takes Precedence

The next step is crafting your marketing materials. While this process typically extends beyond a week, for the sake of this discussion, focus on your direct email, website landing page with contact information, and phone lead capture system.

• It’s High Time to Start a Mail Campaign 

Now, it’s time to kick off the direct mail campaign. This week is the lightest on your 28-day calendar. Physically send out your direct mail pieces and wait for replies. Typically, it takes multiple pieces to get a response, but with a compelling message and targeted list, expect a 4-5% response rate. Personalize letters for better results. Invest in a “return service requested” to track address changes. If you’re on a tight budget, fill envelopes yourself. Otherwise, use a printing service like Modern Postcard. This frees up time for the next steps in your lead generation journey.

Sharon VornHolt, marketing and branding expert for your REI business,  emphasizes the paramount importance of direct email campaigns for eliciting motivated seller leads. If she had $5000 of allocated budget per month, a significant part of it, she would have spent on a direct email campaign. “I would devote this to direct mail, and to hiring someone to answer your phones and to follow up with all of your leads. I can guarantee you that if you’re spending this much money on direct mail marketing your phone will be ringing off the hook.”

• Lead Screening

Once your motivated seller lead reaches out via phone or website, initiating a call is crucial to uncovering key details about the seller and their property. Probe into their reasons for selling, tenure in the home, desired sale price, property location, title holders, and any upgrades made. This week, prioritize active listening and rapport-building over sales tactics. Educating sellers on the selling process and managing their expectations establishes trust and credibility, increasing the likelihood of them choosing you as their agent.

• Stay in Touch

It’s crucial to keep the conversation going with your leads. While you don’t want to overwhelm them, staying in touch ensures you’re there when they’re ready to make a move. Set reminders to send friendly emails or make brief phone calls to check-in. Building trust takes time, and some leads may not be ready to sell right away. By keeping the lines of communication open, you’ll be top of mind when they’re ready to take the next step. It’s all about nurturing those relationships and being there when they need you.

And now, we will discuss additional ways to find the best real estate seller leads.

• Interact with Real Estate Investors

Building relationships with real estate investors ensures access to distressed properties or homeowners seeking quick sales. Engaging with local investment gatherings, participating in virtual forums, and attending networking gatherings are significant ways to forge relationships with investors. By showcasing your real estate expertise and conveying your eagerness, you are sure to identify motivated seller leads in the short term. Establishing rapport with investors can unlock a treasure trove of potential leads.

• Cold Calling

According to the statistics, comes in as the second most effective prospecting method for real estate agents (57.1%), trailing behind referrals (92.8%).Real estate agents own up to the fact that 50% of their leads stem from cold calling. While cold calling remains a potent lead generation method, over-reliance on it can overlook equally or more effective channels.

Research by Call Hippo indicates that making a minimum of 6 cold calls can boost contact rates by 70%. Velocify reports that 93% of converted leads are typically reached by the 6th cold attempt.

• Probate Sales

Probate sales involve selling a deceased person’s property to settle their estate. While it might feel eerie initially, many agents overlook this opportunity due to its sensitivity. You can identify potential seller leads by checking local obituaries, attending estate sales, or searching probate records online. A respectful approach, such as a free market analysis, can initiate meaningful conversations without seeming pushy.

• Get in Touch with Relocation Services

When big companies or government offices relocate their employees, it’s a chance to help people who need to sell their homes. You can team up with companies that help with moves or talk to HR departments in big companies to get leads on people who are moving. This can give you a regular flow of people who might want to sell their homes.

• Make Use of Handwritten Letters

Sending handwritten letters to distressed property owners is a thoughtful way to show that you care. If a letter is handwritten with genuine ink (not imitation), chances are you won’t toss it aside without giving it a read, even if the sender is unknown.

The use of real ink signifies that someone invested considerable effort in crafting the letter specifically for you. It indicates they didn’t simply send it out en masse to countless recipients; rather, they genuinely value your attention, for whatever reason.

Write a message that speaks to the challenges they might be facing as motivated sellers, and make each letter personal. Don’t forget to include a clear next step so they know what to do next to encourage them to respond to your letter.

• Social Media Targeting is Not to be Neglected

According to a survey in 2022, social media ranks as the top tech tool for lead generation among realtors, with a whopping 46% indicating its effectiveness. While email marketing, digital ads, and content marketing are viable alternatives, they yield lower conversion rates in the real estate sector.

Platforms like Facebook and Instagram offer a great way to find motivated sellers. You can aim your ads at people based on their age, location, and what they like. Create eye-catching ads showing how helpful working with a real estate agent is. It can help you find people who are interested in selling their homes. So, hop on social media and start reaching out to potential sellers!

If we talk specifically about the most common social media in real estate, 10% of realtors take advantage of Facebook. 

Pay-Per-Lead Is to Be Considered

Pay Per Lead (PPL) is a type of marketing where advertisers pay for each new customer or potential customer they get. Instead of paying for ads just to be seen or clicked on, PPL focuses on getting people who are interested in buying something. This is a simple and, at the same time, a win-win formula in real estate. 

It implies buying ready-to-go leads without getting tangled in complicated marketing campaigns. Instead of paying for ads that may or may not bring in customers, you only pay for the leads you actually get. This means you know exactly what you’re spending and get leads already interested in your offer, saving you time and money. Real estate investors often use PPL advertising strategies to attract motivated seller leads, targeting individuals actively looking to sell their properties. 

Here’s how it works with iSpeedtoLead: The cost of each qualified lead we provide depends on its quality. A lead typically involves someone completing a sign-up form, sharing their contact details, giving your business an opportunity to engage with a potential customer. While some leads generated through advertising might not meet your criteria, iSpeedtoLead allows you to select leads tailored to your needs based on specific parameters and geography, ensuring you only pay for those that align perfectly with your requirements.

Why Pay Per Lead Is the Choice?

PPL leads are often more valuable because they’re warmer – meaning potential customers are still keen on what you offer. With PPL, you only pay for leads that have a real chance of converting into customers, saving you money wasted on uninterested clicks. If your current lead generation strategy is costly or not delivering enough follow-up opportunities, switching to PPL might just be the solution you need.

The Benefits of Pay-Per-Lead for Real Estate

In real estate, timing is everything, and pay-per-lead offers some great perks:

• Predictable Cost: You can plan your budget better because you know exactly how much each lead will cost. No surprises, just clear expenses.
• Stable Leads: Unlike PPC (pay-per-click) ads, where costs can change suddenly, pay-per-lead gives you a steady stream of interested leads, keeping your business running smoothly.
• Quality Leads: Instead of flooding you with random leads, pay-per-lead focuses on finding the right people who are more likely to become customers, saving you time and effort.
• Time and Resource Savings: Without the hassle of setting up and managing complex campaigns, you can spend more time closing deals and growing your business.
• Pre-Qualified, Conversion-Ready Leads: Through pay-per-lead, you’ll exclusively access leads meticulously pre-screened to match your specific requirements. This ensures your sales team can dedicate efforts to converting these leads into loyal clients, avoiding time wastage on unproductive prospects.
• Stable CPL Amid CPC Fluctuations: While CPC can wildly fluctuate due to market dynamics and competitor activity, pay-per-lead offers a consistent CPL, providing stability and predictability for your budget.
• Streamlined Approach sans A/B Testing: A/B testing various marketing tactics can drain time and resources. With pay-per-lead, you sidestep this process, diving straight into receiving pre-vetted leads, saving both time and money.
• Controlled Budget with Predictable CPL: Embracing pay-per-lead grants you command over your marketing expenditure. Set a fixed CPL that mirrors your business objectives, ensuring expenditure solely on top-tier leads.

Exclusive, tried and true tips for seller leads negotiations

When it comes to negotiating with real estate leads, it might seem daunting at first, but it’s actually pretty straightforward once you get the idea of what drives them. 

Leveraging a motivated seller can help you get comfortable with the process. Firstly, you need to figure out what motivates them to sell their property and understand their situation. By gathering the relevant information, you are sure to make the deal run smoothly. Furthermore, some motivated sellers might be open to accepting an offer lower than they initially requested. So, starting with a low offer, it’s worth giving it a shot. It is also of great importance to be patient with price adjustments. If seller leads have their property on the market for quite a while, they tend to lower the price. If you’re not keen on paying the full asking price, you could wait for the price to drop. However, it should always be considered that sounding too scripted will put off potential seller leads. For instance, it is better to address someone by their name rather than by sir or madam.

At the end of the day, we’ve rounded up the top questions that you may use when negotiating with seller leads.

1. Am I speaking directly with the person who makes the decisions?
2. How long has the property been on the market?
3. Would you be open to accepting a slightly lower amount if it meant relieving yourself of your obligation to the home today?
4. Are your motivations primarily financial or time-related?
5. Would it make sense to extend this listing for a small fee?
6. Would you consider removing some additional components or add-ons in exchange for a quicker closing?
7. Are you ready to hold onto this listing if you don’t receive the desired price?
8. Have you considered the possibility of not receiving the offers you anticipate? Would you be willing to compromise some demands for a smoother, quicker closing process?
9. Would you be willing to accept if I were to offer a cash amount of $_ today and close the deal within two weeks?
10. Have you sought counsel from a Realtor, or are you engaging with other investors?

Finding motivated seller leads is key in your quest to become a successful real estate wholesaler. But where can you discover these valuable leads? Look no further than iSpeedtoLead! With our platform, you can capture motivated sellers early in their journey, precisely when they’re actively seeking a home valuation. Our instant marketplace provides high-quality and affordable leads, giving you a competitive edge in the market. 

With iSpeedtoLead, you can preview essential details such as the seller’s reason for selling and needed repairs before committing to the lead, ensuring you make informed decisions. Plus, our platform guarantees that every lead is off-market, eliminating tire kickers and wasted efforts. Don’t miss out on the opportunity to connect with motivated sellers and take your real estate business to new heights with iSpeedtoLead. Sign up now and start closing deals with confidence!