Understanding motivation is usually crucial in real estate transactions. Whether you are a buyer or a seller, prioritizing your objectives will help you define your motivations. Realtors need to have a clear grasp of their client’s motivations to best serve and protect their client’s interests.

Motivations can vary dramatically with either transactions involving your personal residence, or involving investment property. Whether you are buying or selling, discussing your needs and desires honestly with your Realtor is very important.

When it comes to your personal residence you may be seeking a different neighborhood, a different size home, or need different features. Job transfers, changing personal relationships, changing family size, deaths, and divorce can all have an impact on the need, and desire, to buy or sell a home.

Home sellers can be motivated by a need to relocate, desire to purchase another larger or smaller home, pressing financial needs, etc. As a buyer it is very important to know the seller’s motivations and, whenever possible, structure your offer to meet the seller’s needs. Often the terms of an offer will be more important to a seller than the price. Your Realtor should determine the seller’s motivation and then work with you to prepare an offer that will have the most appeal.

The income property seller or investment property buyer will usually have well defined motivations.

Typically buyers are motivated by the desire to acquire and hold more property. Building a larger property portfolio is the objective. In addition buyers are routinely motivated by attractive pricing, upside potential in rents, and attractive financing terms.

Investment property sellers generally fall into two categories: 1) senior investors who wish to escape property management headaches and demands while avoiding punitive capital gains taxes and 2) ambitious younger investors who wish to exchange their property, and property equity, into more or larger properties. Whenever exchanges are involved timing becomes a significant factor.

Often Realtors become too focused on the mechanics of listing and selling real estate and overlook the importance of motivating factors. Carefully evaluating and understanding motivations can help the experienced, and skilled, Realtor structure win/win transactions