Don’t Waste Time Contacting These Homeowners—Why They Won’t Sell

As a listing agent, you’re constantly hunting for high-quality leads, looking for signs that a homeowner is eager to sell. But equally crucial to your lead generation strategy is knowing which properties to avoid so you can invest your time and energy in more likely prospects.

Below is a list of signs that a homeowner probably isn’t ready to sell. To help you streamline your lead generation efforts, we’ve decided to focus on signs that you can easily determine using real estate data and search filters.

Keep in mind that the list below is a general guideline and shouldn’t be taken as absolute. We recommend using your best judgment when assessing a lead’s quality and deciding whether or not to reach out.

10 Tell-Tale Signs a Homeowner Is Less Likely to Sell

1. No Financial Distress

Signs of financial distress like late mortgage payments, preforeclosure or foreclosure filings, tax delinquencies, or liens often indicate a homeowner is motivated to sell.

Meanwhile, the absence of these signals can indicate a homeowner is comfortable where they are. This is especially true when interest rates and home prices are high, which could make buying another home more expensive for the homeowner.

2. Paid-Off Home or High Equity

Paying off a home is a long-term, focused endeavor, one that nearly 40% of homeowners have completed, according to the U.S. Census Bureau.

If a homeowner has successfully achieved this—or has built high equity in their property—they likely did so with the goal of staying there long term. This isn’t a hard-and-fast rule, but unless the owner has a specific reason for moving (e.g., life change, new job, or income growth), you’ll likely have a harder time turning them into a client.

3. Low Mortgage Rates

If a homeowner’s mortgage interest rate is lower than the current market rate, they may be hesitant to sell. After all, doing so could mean taking on a more expensive mortgage, even if they bought a home of the same value as their current one.

Instead, consider searching for homeowners with mortgage rates that are higher than average, whether due to aggressive loan conditions or simply buying when rates were on the upswing.

4. Recently Purchased Home

Conventional wisdom dictates buyers should stay in their new property for at least five years before selling to recoup some of the losses of closing costs. Of course, this doesn’t apply to homeowners experiencing a life change, such as an addition to the family, a new job, or becoming empty nesters.

That said, it’s not common for life changes like these to happen immediately after moving into a new house. Not to mention, selling a home and buying a new one can be a highly stressful process for homeowners, so consider avoiding homeowners who purchased their properties six to 12 months prior.

5. Desirable Living Situation

If a homeowner is in a desirable location, it could make them less inclined to move. When gauging a lead’s potential, take a look at the quality of its:

• School district
• Neighborhood
• Local amenities
• Walkability
• Nearby hospitals
• Proximity to public transportation or major highways

Also, consider the property’s condition, as homeowners with rundown properties may be more motivated to sell than those who have recently renovated or whose homes are in pristine condition.

6. Low Property Taxes

Low property taxes are an excellent incentive for a homeowner to stay put. This is especially true if they live in a state that has a homestead exemption, allowing them to enjoy discounts on their property taxes over the years. For these homeowners, moving would likely result in higher property taxes, particularly if they move to a nicer area.

7. Recently Downsized

Just over half (51%) of retirees opt to downsize, according to a Merryl Lynch report. Those who have recently done so may be content with their current situations. Even if their new home doesn’t meet their expectations, they may not be looking to move again so soon.

Instead, consider reaching out to empty nesters and retirees who are still living in large homes. If they’ve lived in the same property for decades, it could be a sign that they’re ready to get your help with downsizing.

8. Low Neighborhood Turnover Rates

If a particular neighborhood has had fewer sales than surrounding areas, it may not be an ideal place to find motivated sellers. These neighborhoods are often ideal living locations and sometimes feature a tight-knit community. As a result, they tend to attract long-term buyers who are financially stable.

To calculate the turnover rate: Divide the number of sales in the neighborhood over the last 12 months by the total number of homes. Then, multiply by 100 to get a percentage.

9. Multiple Properties in High-Growth Regions

If you specialize in working with investors, you might regularly look for leads who own multiple properties. This can be a smart strategy since investors may have more than one property they want to get off their hands.

However, if an investor’s properties are all in fast-growing areas, they may be less likely to part with those lucrative assets. A better bet is to find properties in declining regions, preferably homes that are vacant, lack curb appeal, or are in need of major repairs.

10. No Recent Tenant Turnover

Properties with little to no tenant turnover are an investor’s dream, providing a reliable source of cash flow. Consider bypassing these leads in favor of investors who are constantly trying to replace tenants and fill vacancies.

After all, tenant turnover can be costly for investors. Whenever a tenant moves out, the landlord usually has to pay for maintenance and repairs, marketing, and showings—all of which take up their valuable time. If these expenses eat into an investor’s profit, it may lead them to consider selling.

Find High-Quality Seller Leads with PropStream

Are you still browsing the MLS for seller leads? PropStream can help you streamline the process. Using our diverse search filters and Lead Lists, you can quickly determine which homeowners fall into the categories listed above and which may be eager to sell.

Refine your searches with over 165 filters like:

• Property details
• Foreclosure or pre-foreclosure
• Owner information
• Occupancy
• Liens
• Bankruptcy
• Divorce status
• Value and equity information
• Mortgage information

Plus, try out PropStream Intelligence to see a property’s condition, likelihood of foreclosure, and estimated wholesale value—as well as properties with negative equity.