1. Targeting a Non-Seller
The first is putting excessive effort into a seller who isn't really selling, which brings us up to the Pareto principle—one of my favorite ideas—also known as the 80/20 Rule. Focus 80 percent of your time—in the real estate industry—on the 20 percent that will actually produce results.
The person whose property is in disarray and is truly motivated to sell is the one you want to focus on. Perhaps they recently moved and are weary of being able to pay for it, or they recently inherited it, perhaps they need the money to cover an unexpected bill or other similar reasons. Another example would be a property owner who has a deadline to sell, whether it be right away or in a few months.
2. Using the Same Pitch
Making the same pitch again is the second error. In general, in my experience following up is the real game-changer. It is where the money is made. However, if you merely keep asking the same question in your follow-up calls, "Now are you interested in selling? Are you ready now? Are you still intrigued? You'll be forgotten without much difficulty, and the prospective buyers won't want to talk to you again. Since timing is everything, the follow-up is merely a way to stay in people's minds. Anything could change. And if you're on their minds right away, you'll be the person they reach out to first.
3. Refusing to let the seller speak
In general, people enjoy hearing themselves talk, but sometimes salespeople like to drone on and on. Therefore, if you keep interrupting potential sellers, it will be difficult for you to establish a rapport.
In addition, it can be helpful to you when folks blather on. You are able to get more information about the property, information you may use later on in the bargaining process. Listening can assist you in figuring out if the person on the other end has an issue that you can assist in fixing.
4. Making It All About the Price
They will sense it if they know that you are only in it for the money. You want to save money on it, of course. But if all you talk about is pricing, you can't establish that rapport. So if you're talking to people about the property and trying to figure out if there's a problem that needs to be fixed, but you keep coming back to, "OK, what price would you want to sell it for? They will ultimately go with someone else.
5. Having a pipeline of small deals
A tiny pipeline indicates that you aren't prospecting enough owners or sellers or that you don't have enough leads. You're simply spending too much time on those that won't yield the best outcomes.
As an investor, you want to maximize your time, money, and efforts. Work with an experienced realtor like Laura Larson, who has access to off-market properties, to be able to identify, negotiate and close on profitable homes.