A key ingredient to your success in probate real estate investing will be the seller. Investing in probate properties offers an abundant supply of very willing sellers.
When you come across a willing seller in any type of real estate investing, you can rest assured that you have just gotten rid of a whole host of headaches you would have otherwise had to put up with. Be sure to treat the seller in the kindest manner. Many times you will find that the seller is in dire need of cash and they must sell the home fast to get to it. They need cash flow now and they recognize you can help them get it by taking the property off their hands.
Fortunately, the seller is rarely in the mood to go over every last detail of the final offer price. They were thrown into home ownership and they see you as someone who can keep them from becoming a landlord. In a lot of situations, the seller is in need of quick cash so they can settle the affairs of the deceased homeowner’s estate. Keep in mind, with all so many factors weighing in your favor, you need only make a fair and reasonable offer for the home.
What is a reasonable offer? You should be prepared to identify and discuss any major and home repairs necessary to bring the home up to date. This will help the seller understand why you need to buy the property for less than market value.
Take a look at every last repair that needs to be done. Get professional estimates, if necessary. One by one, reduce the offer price by the estimated costs to bring the home up to your standards. Take time to type up your finding and then be prepared to discuss the repairs and your offer price with the seller.
Whatever you do, don’t assume the seller is uninformed. Always be sure to treat them with respect. There may be another investor they are working with. Any attempt on your part to sweep things under the rug can easily ruin the deal. Don’t exaggerate, lie or conveniently omit any facts. Be open with the seller regarding your intentions where ever possible.
It may not seem like probate property investing requires all that much compassion on your part. Realize that the seller likely does need your help in more ways than just selling you the property. Be helpful, not phony and they will thank you for it by selling the property to you at a very favorable price.
You can make probate real estate investing very easy for yourself, if you always make the effort to be kind and respectful to the seller. When you are kind to the seller, you are ultimately helping yourself close another profitable deal.