by Jeanette Fisher

I'm more concerned with remodeling a home using design psychology and home staging than finding a seller that's so motivated that I can low-ball a house, but people often ask me how they can find motivated sellers in their area. Here are a few ideas I give them along with tips that makes the strategy work:

First, you can take out an ad in a major daily newspaper in your area saying that you buy homes. Run it week after week to let people know you're serious and to give them a chance to find you on any given day. You're saying--everyone is already doing this. The tip that makes this work: Answer the phone! Don't let your motivated seller go to a recorded message. They'll hang up and call the next investor.

You can also drive around your target area, looking for FSBOs. FSBOs will especially welcome your inquiries, since they're actively trying to sell their homes. However, don't be surprised if the home is overpriced. If so, leave your number and ask them to call you if they decide to lower the price or offer better terms. You may get a call in a few months. The tip that makes a difference: Ask them if you can check back and then call back in a few weeks. Send a friendship card with a note. The more contact you have, the more likely the owner will remember YOU to call when things get desperate.

If you have a friend in the real estate business, ask to search the MLS listings for junker homes in your target area. These home owners are generally open to offers, since their homes are never going to get any better or more expensive. For them, their property will continue its downward slide. Tip: make offers on three houses, disclose this fact, and select the best deal.

Using your real estate contacts, it can also be worthwhile to contact MLS listings that expired, since those home owners are often frustrated and ready to deal. They've tried to sell and failed, so they may jump at a second opportunity. This can be especially effective on homes that received no offers during the listing period. (You may need to check the legality of getting expired listings from your agents.)

Another potential motivated seller is a landlord who has either just had to evict a tenant or has had a property vacant for a considerable length of time. They're often prime candidates for buying a house for a good price--if you can catch them at the right time. This works well when other people know you like to watch for these situations and you reward for tips with a restaurant gift certificate.

You can also get good deals on properties that have been condemned or fire damaged, assuming you have the money and expertise to rehabilitate the properties. Make sure you have a strong handle on what a house will require before you put in an offer, however. It's one thing to find a motivated seller. It's quite another to get sucked into a quagmire of red tape and expense.

Regardless of where you live, you can find motivated sellers--if you're willing to be creative and patient.

Learn more about finding profitable houses to fix and flip: Free flipping houses information

Copyright © 2007 Jeanette J. Fisher