Due to the increasing competition in the real estate market, investors are under massive pressure to adapt to changes and cut costs. Governments further complicate the situation by tightening legislation that monitors real estate agencies from using aggressive methods to locate motivated sellers. Therefore, real estate investors need to adapt to the ever-changing legislative environment and market competition to cut costs and increase efficiency. In comes segmentation.
Luckily, skip tracing can help real estate investors to predict highly motivated sellers through lead generation. These investors can work more effectively and cost-efficient by targeting consumers who are more likely willing to sell their homes. Today, we discuss four groups of motivated home sellers you could target when using data to advance real estate investor segmentation efforts.
Individuals that Can’t Afford Mortgage Payments
The first real estate segmentation area is people falling behind on their mortgages. We are not talking about foreclosures in this situation. But rather about those property owners that are struggling to meet their mortgage payments. Although these individuals haven’t missed out on any of their payments, they are finding it difficult to keep up with the payments.
Did you know that skip tracing can help you identify individuals on the verge of financial ruin? Such consumers are desperately looking for a way out — usually a real estate investor to buy their property. Although most of these properties may not be the ideal buy, you can occasionally find a couple of good deals.
Individuals with Delinquent Taxes on Their Property
There are a lot of homeowners who have no money owed or mortgages on their property. However, some of them are unable or unwilling to pay taxes for one reason or another. When these individuals are at risk of defaulting their taxes, the local municipality has no option but to foreclosure their property.
Although it seems weird, there are a lot of property owners that walk away from their homes due to delinquent taxes. Usually, it is because their issues go beyond financial problems. According to the World Property Journal, local US governments sell about $5 billion worth of delinquent taxes every year to the private sector.
Individual Looking to Sell Inherited Property
Many people in the US find themselves owners of pieces of property they don’t want through some twist of fate. Maybe it is the home of their deceased grandparents or parents that fell into their possession. Because they have no interest in keeping the property, their best option is to sell.
These individuals view inherited property as a problem due to increased liabilities and expenses. In most instances, these property owners will be looking for a realtor to offload the property. Other times, they might consider tax foreclosure because they don’t have the time and energy to deal with it.
Individual Looking to Move
Although many people purchase property intending to develop it, life changes leave them with no option but to abandon the property. People move away often, get new jobs, go broke, and get sick. As soon as their intention is redirected to something else, these individuals will be looking to sell their property quickly.
There are also a lot of individuals who move away and abandon their previous property. The property is completely cut off from their priority list because they have moved to bigger and better things. Such individuals are highly motivated to sell.
Ensure You Prioritize the Right People
In the past, real estate investors had no option but to contact each portfolio. Therefore, a lot of time and resources were spent trying to identify which accounts to avoid. Data analytics helps solve this problem by offering all the information you need to identify and deactivate uncollectible accounts.
At Enformion, we can help you leverage data to advance your real estate investor segmentation efforts. You can save future costs by skip tracing clients who are more willing to sell their homes. Ensure you contact us today to start maximizing your real estate portfolio.