What’s motivating sellers to sell their properties in this market?
Finding motivated sellers is critical for house flippers, real estate wholesalers, and acquirers of buy and hold income properties alike.
However, the latest data shows that mortgage borrowers of all types may be in a much stronger position than believed. At least for now. So, if they aren’t falling into foreclosure yet, what are some of the motivators that make for good sellers and deals in this market?
Mortgage Debt Performance Stays Strong
The latest round of data from banks reported by DistressedPro shows that mortgage lates and defaults have fallen across all sectors. Including residential, commercial, and farm loans. There are almost no REOs being held by banks.
Many thought there would be a lot more foreclosures and defaults by now.
Thanks to many locking in very low rate long term loans, there could be a stronger foundation in the market for this cycle. Which supports property values, and helps to avoid a new massive foreclosure crisis.
Buyers & Sellers Get Bearish
In spite of the above data, Fannie Mae has been one of the most bearish on the housing market. Predicting trouble in the real estate market could throw the entire economy into a new recession next year. Even though we just exited one.
Their recent survey shows just 16% of home buyers think that this is a good time to buy. With only around 40% of sellers thinking that this is a good time to sell.
How Do You Find The Motivated Sellers
Of course, just because it may not be as an attractive time to sell a home for regular homeowners as in the summer, that doesn’t mean people won’t have to sell.
Layoffs are surging, with few new jobs due to hiring freezes. Along with diminishing affordability due to inflation, and consumers defaulting on more credit card debt, auto loans, and business loans than any point in the past two years, many are in financial distress.
There are lead lists that can help identify these markers. Investors can also use SEO and content marketing to educate owners about their options and lead them to getting an offer.
Other real estate companies, businesses, and even the world’s largest banks have been selling off real estate assets to recoup capital to keep operating. Even at prices much lower than they were valued at a few months ago. Try direct marketing to them.
Falling home prices could be the most pressing motivator right now. In the past three months alone an estimated $1.3T in home equity has been lost due to declining prices. Any seller with some common sense, and educated on how much further prices can go down will see it is better to cut their losses now, than to wait and lose more.
Trying publishing more educational content around this. Whether it is on your blog, or via email or print newsletters.
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