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The ability to quickly separate the motivated sellers from the time-wasters is a valuable skill that will save you time and frustration. That's exactly what the MARLA formula is designed to do. M is for Motivation. A is for ARV (after repair value), R is for Repairs, L is for Loan balance, and A is for Asking price. The 5 magic questions are:

1. Why do you want to sell your house?

2. How much would the house sell for?

3. What repairs does the home need?

4. What is/are the current loan balance(s)?

5. What is your asking price? Follow-up: Is that your bottom line?

Let me explain why we're asking these questions.

The first question reveals the seller's MOTIVATION. The best case would be if the answer indicates a high level of motivation to sell the house quickly. Most sellers will not be motivated and if that's the case with the seller you're speaking to, then it's your decision whether to ask more questions. You've got them on the phone so you might as well ask and make an offer. Sometimes sellers will hide pertinent facts until you warm them up. Then they'll reveal their motivation so don't give up too quickly but don't try to squeeze water out of a rock either.

The second question provides an idea of the home's worth. Sellers generally have a pretty good idea of their home's market value. For now you can use the sellers number but be sure to do your own due diligence before you close on the house. You may have found a good deal if the seller doesn't know the home's market value. Ignorance is expensive. Ask them what they want.

You'll need to know if the house will require any repairs to bring it up to market condition so ask "Does the house need any repairs?" If yes, find out what needs to be fixed. Ask the seller to give you a repair estimate. They'll often name a high number that will work to your advantage.

To find out about the existing financing on the house ask, "What's the current loan balance?" Don't be afraid to ask. MOTIVATED SELLERS will tell you. If the seller won't tell you, then s/he is not motivated and you can move on.

You'll get the seller's asking price from the final question. Always ask a follow-up question to test the seller's asking price. More often than not, the seller will drop the price with a simple question that gets to the bottom line.

You may need more information to make an offer - sometimes not. But at least now you can sort out the unmotivated sellers in minutes. Now it's time for either a few follow-up questions or an offer but that's a topic for another article.