Getting The Right Information From The Seller

by Jamel Gibbs  December 6, 2008


So you have the ads running, you have the post cards delivered, you have the bandits signs up, and now your phone is starting to ring. What do you do when the sellers call? What questions do you need to know in order to evaluate                                                                                         the deal and make sure you present the right offer?

This article will give you the top five things you need from the seller in order to evaluate a potential real estate deal:

It's quite obvious that you will need the name and phone number of the seller who is calling you. Therefore, we will not get into that. This article is about important, common sense questions.

One: The first important thing that you need from the seller is the property address, square footage, and bedroom and bathroom information. Find out where the property is located. Ask the seller what is in the surrounding area. How far away is the nearest shopping center, etc.? Try to get as much detail about the property as you can.

Two: Next you will want to know about the repairs needed on the property. Tell the seller to be specific so you can get an idea of the amount of repairs the house needs. Ask questions about the boiler and the roof. Find out what was upgraded already. Ask about the electric and plumbing in the house. What about the windows, kitchen and bathrooms? Get the seller to tell you as much as possible.

Three: After discussing the property now you want to know why they are selling the property. Make them go into detail. This is very important. This question will help you determine if you're going to take a look at the property or not. If they say that they are selling because they need the money, that is not a good enough reason. If they are selling because they need cash to pay off an expensive medical bill that was for a life threatening illness. now you're talking. Obviously, you want to target motivated sellers, so try to find out the seller's why (in detail).

Four: Now it's time to ask about the financing on the house. What is the loan balance on the house? Are they current on their loan and taxes? Will they take what they owe? How much is the first mortgage amount? What about the second? Is there a third mortgage? How much are they asking for the house? Try to find out as much about the financing on the house as you can. If they are serious motivated sellers they will tell you. If not, they are probably not your cup of tea.

Five: The last important thing you need to know from the sellers is if they are willing to take less money if you pay cash. Ask the seller this question: “if I were to pay cash and close quick, what is the least amount of money you are willing to take?” This is a very important question because this will tell you how motivated (desperate) the seller really is.

Remember to ask your questions with confidence, be polite, and keep in mind that you are there to help the sellers get out of their situation. Ask these questions and you will eliminate the unmotivated sellerss off of your list.

© Copyright 2008 Jamel Gibbs All Rights Reserved. Reprinted by Permission. Check out Jamel Gibbs at Copyright © 2004-2014 BiggerPockets Inc. All Rights Reserved.