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The MARLA formula consists of 5 magic questions that will help you quickly weed out the motivated sellers from the rest of the pack. MARLA is an acronym for Motivation, ARV (After Repair Value), Repairs, Loan balance, Asking price. Here are the 5 magic questions.

1. Why do you want to sell your house?

2. What's the market value of the home?

3. What repairs does the home need?

4. What is/are the principal amount(s) of your mortgage(s)?

5. What's your asking price for the home? Follow-up: Would you accept a lower offer?

Let me explain why we're asking these questions.

"Why are you selling the house?" reveals MOTIVATION. If the answer is indicative of a MOTIVATED SELLER, that's a good sign. If the seller shows no sign of motivation, then it's your call. I figure I've got them on the phone so I may as well get answers to my other four questions and make an offer, but that's me. Some sellers withhold information until you build rapport, then they'll spill the beans that they're MOTIVATED. Be patient.

"How much is the house worth?" gives an indication of the home's market value. Most sellers have some idea of how much their house is worth. Of course you should do your own due diligence before actually buying the house, but for now you can just go with what the seller says. If the seller doesn't know what the house is worth, you may be able to get a good deal. Ignorance is expensive.

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.

The final question gives you the seller's asking price. It's a good idea to ask a quick follow-up question to see if the seller is being truthful. It's amazing how quickly sellers will drop their asking price by thousands of dollars in seconds.

After asking these 5 questions, you might even have enough information to make an offer, maybe not. But you'll know if you've found a motivated seller or not and you'll have done it quickly with 5 simple questions. Depending on what you've learned from the 5 magic questions, it could be time for some follow-up questions or time to make an offer but those are topics for other articles.