When I speak with real estate investors and brokers, I’m always talking about creating and presenting solutions to potential sellers and buyers. In some markets, there are multiple challenges facing seemingly all sides. As the below linked article indicates in great detail, Seattle is an example.
Some renters can not afford a down payment in order to buy, and rising rents are making it more challenging to afford the rental they want. Meanwhile, some sellers are not willing to sell because of concerns about making the down payment on a new purchase. What these trends tell me is that people are looking for the right solution which will help them move forward.
It is understandable that investors and brokers look at the numbers ahead of all else. However, many of these situations are not completely based on the numbers. The goal should be to solve the problem for the potential seller and do so in a way that it ALSO works for the buyer.
I continue to see a growth of Subject To, Rent To Buy, and Novation deals. Those don’t happen until and unless there is a lot of discussion and then negotiation between the buyer and the seller. You may be looking to purchase from or represent the seller to get a transaction done, but it is more than that for these types of sellers.
Understanding the market and then understanding the true needs of the potential seller is where you start. If you can solve their problem(s), and be able to convince them how you can solve them for their benefit, you could have a winner.