Home Buying & Selling 5 Mistakes Investors Make When Dealing With Sellers

5 Mistakes Investors Make When Dealing With Sellers

by admin
0 comment

Today, as a real estate investor looking to buy, let’s look at some of the mistakes you want to avoid when dealing with sellers.

1. Focus on non-sellers

The first is to focus excessive efforts on sellers who are not really sellers. And this goes back to one of my favorite principles, the 80/20 rule or the Pareto principle. Polish 80 percent of your time to 20 percent that you will actually give you results when it comes to real estate space or when you are winning a deal. That’s just one example.

You want to focus on someone whose property is in need and whose owner actually has the motivation to sell it. Maybe they just inherited it, are tired of recently relocating and managing it, or need cash to be able to pay unexpected costs, or are other instances of that nature. .. The other is an owner who has a timeline to sell for some reason, whether now or within the next few months.

2. Use the same pitch

The second mistake is to follow up at the same pitch. In general, the absolute game changer for me is always to follow up. That’s where you make money. But if you’re following up and you’re always using the same message on your phone, say: Is it now? Are you interested now? You can easily be put on the block list and that person will never want to talk to you again.

Related: Real Estate Lead: How Much Do You Really Need to Follow Up?

So if you can be creative with the follow-up method, it goes a step further. Let me give you some examples.

  • I love using the Rubik’s Cube. This is a small little thing with a note saying “Hey, let’s understand this”.
  • Another method I’ve recently implemented as a follow-up is to send a birthday card.
  • Another method is value-based, telling the seller: 1031 exchange?? (1031 exchange is Postpone tax.. )

Follow-up is just a headache, as it results in timing when someone may or may not be interested. Anything can change. And if you are at the forefront of their hearts, you will be their reliable contact.

3. Don’t let the seller talk

Sometimes sellers like to walk around many times. In general, people love to listen to themselves. So, if you constantly cut them off, it doesn’t allow you to build that relationship.

Moreover, when people roam, it can be beneficial to you. Find out more about properties that may be available later in the negotiations. It can help you determine if the person on the other side has a problem that can help you solve.

If there are no problems, there really isn’t a solution you can offer. You can then move on to the next individual who has a problem to solve. This can bring you back to focusing on the most valuable time and gaining a lot.

4. Make all of the prices

If the person knows that the price is all for your purpose, they will feel it. Of course, you want to make a good deal on it. But price alone is not enough to build that relationship.

So, if you’re discussing a property and trying to figure out if there’s a problem to solve, but you’re constantly bumping into “OK, what’s the price you want to sell?” Then they will go with someone else.

Related: How to build trust with motivated sellers

In many cases, it’s not really the price. The property I was talking about earlier in the video above was not the highest bidder when it came to the actual offer I offered. But I was able to build that relationship and the relationship with the owner, and then I was able to gain an edge over all other bidders.

In fact, there were no other bidders just because they had that relationship. Even though they had a higher offer, it cut out everything else.

5. Have a small pipeline

If you have a small pipeline, that means you don’t have enough leads or owners / sellers you’re looking for. So you’re just focusing too much time on things that have little effect on you.

Maybe you fell in love with one property, but its owner isn’t trying to sell it. It seems desperate when you are negotiating and trying to buy the property. In contrast, if the pipeline is large enough, you can move on to the next pipeline.

that’s it! These are the 5 mistakes you want to avoid. And I myself am still making mistakes and still learning myself. That’s why I generally love to share my experience as an entrepreneur / investor and my journey in this industry.

Do you have any questions about the above tips? Unique tips to add?

Please leave a comment below!

You may also like