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Guiding Your Real Estate Deal To The Closing Table

Published on Monday - June 09, 2014

Much is made by investors in trying to discover what seller’s motivations are. The reality is that just because someone is motivated to do something, it doesn’t mean they will actually do it. We see examples of this not just in real estate, but in everyday life. Instead of trying to discover a seller’s motivation, we should try to discover their goals for the transaction and if they are really willing to move forward with a deal. While these seem intertwined, they are really quite different. A seller may be motivated by the foreclosure notice on their front door, but their goal may be to try to live in the property for as long as possible or to receive monetary compensation for moving. Once you know the difference, you can tailor your offer to their goals and ultimately close more deals.

There is nothing worse as an investor than working with a seller for months, jumping through hoops to give them everything they want, only to have them walk away during the real estate closing process. In most cases, there may have been clues that could have alerted you that they may not have been as serious as they let on. Instead of trying to rush the deal to contract, it is better to take time at the beginning of the deal to lay out exactly what is going on, when it will happen and for how much. You may lose a deal or two at the outset, but that is far better than on your way to closing.

Different sellers are motivated by different things. The more you communicate with your seller, the more you should be able to find out what motivates them. It may be time, money, convenience or even what you will do with the property if they sell to you. Not every deal is going to go exactly the way you want, when you want it. Even if the seller is late on their mortgage and facing foreclosure, it doesn’t mean they will sell to you on your terms. There are a dozen investors just like you that are trying to get them to sell. If you keep trying to sweeten the pot in your favor, eventually they will have enough and respond to one of the other letters they receive.

During the process, you always need to be ready to answer questions and stay in contact with the seller. Even if the offer is at the lender awaiting an answer, you should check in with them every so often to share any updates or timeframes you may have. If you go months without communication, you will give the perception that you aren’t around and they will begin to look elsewhere. The conversations don’t have to be long and they can even be done through text or email, but you should have some communication even if you don’t have much to say.

Most offers you make will have some difficulty before you close. Don’t assume that once you agree on a price your work is over. Stay in contact with your seller and be ready to guide them all the way to the closing. Knowing what your seller wants, what is realistic and how they can get it will help you get the deal to the closing table.

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