If you have never been through hard times yourself, you may have difficulty understanding why other people would be willing to sell their home or RVs for less than half of what they owe on it. Personally, I have been through some tough times. I have had rental properties that have eaten a huge chunk out of my savings. There have been times when I was willing to pay someone to take one of my properties off my hands. In order to help you understand why other people are motivated, I would like to share with you five of the most common reasons why a lot of sellers wish to sell their home or RV quickly.
The number one reason why people are motivated is because of unemployment. Currently, unemployment in our country is about 8.5%. Among teenagers, and people over 60, the unemployment rate is closer to 20%. If you’re used to a certain type of lifestyle, then have your hours at work reduced, or you find yourself without a job, one of the first things that you will try and do is sell your RV. Even if you have to take a loss on your equity, it is worth it so that you can keep from having to make your monthly mortgage payment.
The second reason why people become motivated to sell is due to bankruptcy. Some bankruptcies are unpreventable, but a lot of them stem from living beyond your means, and going into debt. People who have excessive amounts of debt may find themselves in a position where they’re unable to continue to make their payments. Once this happens, they are almost certain to need to file for bankruptcy. In order to avoid bankruptcy, they may sell their home or RV at a reduced price. Another common cause of bankruptcy is medical bills. Medical bills can easily total more than $100,000. Even with insurance, these bills can be very costly and difficult to pay. One time, I consigned an RV for a guy who was selling to pay for his wife’s medical bills. He was only asking about $40,000 for an RV that was worth close to $85,000.
Divorce is another unfortunate event that often leads to a motivated seller. People who are going through divorce are usually always miserable. For most people, divorce doesn’t solve their problems, it just makes their life more complicated. Sometimes they become completely detached from items like cars and RVs. Often, owning something together is more of a burden than a blessing. People usually try to liquidate their assets very quickly when they are going through a divorce.
Out of all the motivated sellers, my favorite group to work with is the inheritance group. Sometimes people inherit an RV and they have no idea what it is really worth. Often they will over value the RV, and then quickly lower the price in order to sell it faster. People who are selling an RV as part of an inheritance, often just want to get their money as quickly as possible. With these types of sellers, an all-cash offer is generally the best way to get a good price on a used home or RV.
When people find out they can’t make their payments anymore, they often receive a foreclosure notice from the bank. Once this happens, a lot of people try to sell as quickly as possible. It is much better for them to owe the bank a little bit of money, or short sell the RV, than it is to have a foreclosure on their record. Once the bank forecloses on their home or RV, it is likely to be sold at a home or RV auction. Even if the seller has to take a loss, most people understand that this is a better option than having to go through a foreclosure.