If you have given any thought to probate real estate investing as a career, you should realize that the sellers in your deals will determine your success. No other form of real estate investing provides a seemingly endless supply of eager sellers.
A ready and willing seller can take 90% of the headaches out of acquiring a property, so treat the seller with kid gloves. In many cases, the seller really needs to sell the property; almost desperately. They need money and you are the key to them getting their cash our of the home.
It’s a good thing for you that these sellers you will encounter rarely have any interest in the home at all. It is very likely they were thrust into a situation of home ownership without warning. They don’t want to own the property, maintain it or rent it out. They want it gone, because when it it goes away, they get the cash out of it they need. So, with so many things on your side, all you have to do, is make a decent or reasonable offer to purchase the house.
When I say reasonable, I want you to understand you need to back up your offer with reasons why you should be able to buy it at a discount. If the roof needs work, get an estimate for the work to be done and back that off of the fair market value.
Take a look at every last repair that needs to be done. Get professional estimates, if necessary. One by one, reduce the offer price by the estimated costs to bring the home up to your standards. Take time to type up your finding and then be prepared to discuss the repairs and your offer price with the seller.
Whatever you do, don’t assume the seller is uninformed. Always be sure to treat them with respect. There may be another investor they are working with. Any attempt on your part to sweep things under the rug can easily ruin the deal. Don’t exaggerate, lie or conveniently omit any facts. Be open with the seller regarding your intentions where ever possible.
Even though probate property investing is not as emotionally involved as foreclosure investing, you should always be as kind and caring to the seller as possible. You may not always have the whole story about the previous homeowner, i.e. they could have died unexpectedly. Always be professional about the interior finishes, no matter how out of date they may be. It will not get you anywhere to be disrespectful about someone else’s taste in decorating and more importantly, it could ruin the deal for you. Think before you speak.
Probate real estate investing can be a snap if you always treat the seller with kindness and respect. Your kindness towards the seller will go a long ways towards furthering your successful real estate career.
