What are the Three D’s of Real Estate?

What are the three D's of real estate?

Death, divorce, and debt are among the main reasons why a home ends up on the market

What are the three D’s of real estate? The three D’s are death, divorce, and debt. From the perspective of real estate agents and investors these are the three main reasons as to why people sell their homes. There are obviously others, but these three main factors tend to stand out. Here is a more in-depth look at the three D’s.

Death

Death is an inevitable part of life. When a family member dies there is often a piece of real estate that remains. Often the family doesn’t want to move into the house. They may live out of town and simply can’t move into the house. There is a good chance that they already have a house of their own. Possibly, they might not be able or willing to take on the burden of home ownership, or they might want the cash that selling will generate.

Whatever the case may be death can present an opportunity for both buyer and seller.

The seller(s) will benefit by unloading an unwanted home, and they will receive the proceeds from the sale.

A buyer may be able to get a favorable deal on a property being sold by the heirs of a deceased individual. Sellers may live out of town and may want to sell the home below market value just to get rid of it and realize the gain from the sale.

Divorce

Statistics say that there is approximately a 50% chance that a marriage will end in a divorce. It is not uncommon for a newlywed couple to buy a home only to wind up separating a few years later. Either the house ends up being sold as part of the divorce settlement, or a person finds themselves in a situation where they can no longer afford the home on a single income.

Whatever the scenario is, a divorce often opens opportunity for investors looking for property.

Debt

Debt is everywhere. Homeowners can find themselves buried in debt making their home simply unaffordable. This can cause the owners to sell or be forced out should their lender foreclose on them. Buyers will often take advantage of such situations. They can work with the lenders or with the sellers directly to work out a deal that benefits all parties.

Conclusion

What are the three D’s of real estate? Death, divorce, and debt are among the three main reasons that a house ends up on the market. Investors and prospective buyers will seek out these situations to try to make a deal on a piece of property. If you are an investor or are looking for a home as a primary residence, then finding a seller in one of the three D’s might benefit you greatly.

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