5 Questions To Help You Find Motivated Sellers

Would you rather pitch your services to thousands of random homeowners or a few hundred highly motivated sellers?

Most agents would pick the latter option without a second thought. That’s because motivated sellers are more likely to want to work with you, making them higher-quality leads. Or, if you have a buyer client, they may be willing to lower the price, allowing you to get an excellent deal for a client. In other words, finding motivated sellers can help you get better results by removing the guesswork and helping you connect with the best leads.

But how do you know if a lead is a motivated seller? Here are five questions to help you find out—plus tips on how to reach out to your new leads.

5 Questions To Identify Motivated Sellers

Ask yourself these five questions to narrow down motivated sellers:

1. How long has the property been on the market? 

Keeping a house on the market isn’t free. 

Even if the home is vacant, sellers still need to pay for the property’s HOA fees, property taxes, lawn care, and, in some cases, online listing advertising if they’re selling without a broker. The longer a property has been on the market, the more the owner spends—and the more anxious they may be to sell.

First, you’ll want to research the area’s average days on market (DOM). If a house has been available for sale much longer than that, the owner could be a motivated seller. This is especially true if the listing has failed or expired or the seller has already significantly reduced the listing price multiple times.

Keep in mind that if the listing is active and it’s not for sale by owner, the seller has likely already signed a contract with another agent. However, this lead could still be an excellent opportunity for a buyer client.

2. Is the owner neglecting the home or at risk of losing it?

If a homeowner is behind on their mortgage payments, they may be unable to afford the home. Preforeclosure status offers a unique opportunity for agents to connect with motivated sellers while helping a homeowner out of a difficult situation, as they may be eager to sell before the foreclosure process officially starts. After all, going into foreclosure can harm a homeowner’s credit, making it harder to buy or rent in the future.

Another sign of selling motivation is if the homeowner is behind on their property taxes or has allowed the home to fall into disrepair. This could mean they’re facing financial distress or have lost interest in the property. Either way, they may be ready to sell.

3. Have they recently experienced a significant life change?

Major life changes can happen quickly—and they often require people to move or sell their homes just as fast. Here are several life circumstances that may produce motivated sellers:

Growing family: When a family has a new baby or invites an aging relative to live with them, they may need a larger home. Over 26% of people moved due to family-related reasons in 2022, according to the U.S. Census Bureau.

New job: Nearly 10% of people moved in 2022 because of new work or a job transfer, and another 4% did so to shorten their commute. If a new job requires relocation, homeowners may not have long to sell their house before their work start date. If they don’t sell in time, they may have to pay for two homes temporarily, which can be expensive.

Retirement: Retirement means freedom from the daily 9-to-5—but it can also mean a cut in income. In fact, as many as 59% of retirees have financial concerns, so it’s no surprise that 51% plan to downsize. Some may want to decrease their financial strain as quickly as possible by selling now.

Divorce: In many cases, homeowners going through a divorce need to sell their property to split the profit. If they’re in a rush to finalize the divorce, they may want to complete this step as soon as possible.

Owner death: When a homeowner dies, there’s a period before the title is transferred to the next of kin. During this stage, the property is called “pre-probate.” Because the surviving family members may want help to sell as quickly as possible (especially if they live out of state or if the late homeowner faced financial hardship), an experienced and empathetic agent may be what they need.

4. Is the home vacant?

Vacant properties eat away at homeowners’ finances since they still have to pay property taxes and HOA fees. If the owner is a landlord, they might feel anxious to get the property off their hands since it’s no longer producing income.

If the property has been vacant and neglected for some time, it may have fallen into disrepair, making it more difficult to sell. This presents another strategic opportunity for you to help them sell quickly—or get a great deal for an investor client.

5. Does the owner have other properties?

If a person owns multiple properties, they may want to eliminate the least profitable one (or one of their “starter properties”) in search of a better opportunity. This is especially true if the property is vacant and the owner is losing money on it.

When looking for homeowners with multiple properties, try to determine how much equity they have in each property. The higher their equity, the more profit they’ll make on the sale—and the more motivated they may be to sell fast.

3 Steps for Reaching Out To Motivated Sellers

Now that you know how to identify motivated sellers, it’s time to make a plan for marketing to them. Use the steps below as a guideline as you reach out.

1. Create marketing lists

First, separate your leads into organized marketing lists based on location and description. For example, when researching properties in your city, you might name your lists “L.A. - pre-probate leads,” “Oregon - vacant property listings,” or “Atlanta - preforeclosures.”

If you create marketing lists within PropStream, you can use our list filters to find properties on multiple lists and, as a result, may have the most motivated sellers. For instance, a homeowner with a pre-probate property that’s vacant may suggest the highest selling motivation.

2. Find their contact information

Many motivated sellers don’t live at the properties they’re trying to sell, so getting their contact information can be tricky. PropStream allows you to find homeowners’ mailing addresses and phone numbers with a simple tool called skip tracing. Our skip tracing services cover 98% of the American population, and we automatically flag any owners on the Do Not Call list.

3. Reach out directly

If you decide to cold call or text your leads, it’s a good idea to write down a script for each type of lead (e.g., preforeclosure vs. landlords) that will best get their attention and communicate the value of your services.

You may also want to add email marketing to the mix. You can use PropStream to send marketing emails and even create a landing page tailored to specific types of leads.

One final note: Aim to be consistent in your efforts and quick to respond. With hard work, determination, and high-quality data, you’re on your way to finding motivated sellers and growing your business.