Lesson 2.2: Interview the Sellers
Understanding the reasons behind the sale of a property is important to crafting the offer. While a big part of underwriting is determining the right valuation for the asset, we also need to spend some time understanding the motivations behind the sale.
This means aside from building rapport and getting the seller to open up and have an honest conversation about the property you want to determine why they are selling and what they are looking for in a transaction. It’s not always about the highest price but rather what they are seeking to make the deal complete. For instance, a fast close may be more valuable than a higher price.