What’s the first step in buying your first piece of resale property? Identifying the right sellers! Knowing how to identify the right sellers is crucial towards beginning your property hunt, and nabbing that dream piece of resale property.
1. There’s a difference between HDB resale sellers and private resale sellers
The difference is clear. In HDB resale, sellers sell because they need to sell. There could be a variety of circumstantial reasons – death, divorce, and more. Nonetheless, the bottom line is this: about 70% to 80% of sellers in the market are eager and motivated to sell.
For private resale sellers, that’s a whole different story.
2. There are three groups of sellers in the private resale market
The first group are sellers whose rental lease is ending. They don’t necessarily need to re-invest in another property, but are just seeing if they can get a good price for their current property. They are not motivated to sell.
The second group are sellers who personally stay at the property, and are willing to sell ‘if the price is good’ (whatever that means)! They are not accommodating and unwilling to bargain. Oftentimes, they are always advertising their property at a higher and premium price.
Clearly, I would advise you not to engage with disinterested sellers who are not eager to sell. For one, they strictly set a higher premium selling price that is above market price. They’re also not accommodating in arranging viewing timings.
The key is to really watch out for the third group of sellers – those who want to re-invest or have already bought another private new launch. They’re the most motivated to sell and want to cash-out immediately. Most importantly, they have a re-investment mindset. This group of sellers are very accommodating and willing to engage buyers in price negotiations.
3. It is crucial to identify motivated sellers
Identifying the right set of motivated, eager sellers is crucial towards identifying the correct market price. Unfortunately, I would have to say that only 10% - 20% of online property advertisements consists of motivated sellers; the remaining are just ‘trying their luck’ with no real reason to sell.
So, then the question is: how do I identify motivated sellers?
There are two things you can do to identify the best sellers. First, avoid property listings that are priced way higher than market value. Second, if the seller proves to be extremely unaccommodating, that’s a red flag!
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Learn how to identify the right sellers in the resale property market, and half the battle is won. Still need expert guidance? Consider engaging my services and I will help you find the best sellers for the best price.