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Professional writers will often call 'writing' their "CRAFT."
"A craft is a skill, especially involving practical arts. It may refer to a trade or particular art." cited CRAFT
When we "DRAFT" a document -- a contract -- putting "pen to paper," do we merely draft that, or do we also apply some crafting?
The reason behind each of the offers we write on behalf of our Buyer clients is to get the 'best terms and conditions' possible. We know, when dealing with the Sellers, they have their motivations as well.
With the blending of both elements, I have found it really is an 'art form' when putting in the terms and conditions for Buyers.
It can become complicated. And the ability to understand the Buyers financial goals is paramount.
For example, a recent transaction involved first-time Buyers. They had some money saved, but felt that they were more comfortable with having their funds liquid. The price of the home was good, but the closing costs -- which always amount to Buyers coming to the table with hard funds -- was something to be considered. I suggested the following: a $5,000 reduction in the list price, and $5,000 in Seller's concession of Buyers' closing costs. The offer was accepted as written, effectively saving the Buyers $10,000, overall.
CASH BUYERS: Sometimes cash Buyers' offers can be tricky. The ability to pay ALL CASH can be a tip off to the Sellers that the Buyers have money. The fine art of knowing where the list price is, compared to overall comps is important to me when 'crafting' a cash offer.
In a recent transaction, I had all cash Buyers. They could have paid the full list price, but of course, I also try to get the best terms and conditions. They wanted to offer $10,000 below list, but I had studied the market. But, the Sellers had moved out, they had purchased another property, and were floating two mortgages. My suggestion was: Offer $20,000 less, and see if they counter. They did not, because they knew the Buyers would be able to close. In crafting that offer, we also stipulated a TWO WEEK CLOSE. The offer was accepted as written, effectively saving the Buyers $20,000.
FINANCE BUYERS: When Buyers are looking at their total dollar amount, closing costs are closely evaluated. Preparing a clean offer, supporting it with the Buyers' PRE-APPROVAL, having all their ducks lined up, helps the Sellers determine the Buyers are prepared to close. With finance Buyers, crafting an offer might mean submitting full list but with closing costs paid by Seller. In this market, when list prices have dropped, negotiating both list and closing cost can be done, it is important to look at the HISTORY of the property. Sometimes, I see that the Original List Price was far above what the current list price. In that case, I explain to the Buyers that in the Sellers' position, they have already "reduced" their list, and might not be in the position to drop price further. Better to negotiate the hard closing cost dollars, and leave the list price as is.
There is SO MUCH MORE to crafting an offer than the above can ever possibly detail. And we all know it really is an 'art form' to preparing an offer and getting it accepted -- at least I think it is!
EBAPortland ~~ 100% BUYER REPRESENTATION ~~ 100% of the Time
EBAPortland, LLC is an Exclusive Buyer Agency serving the Metro Portland real estate market since 1999. If you’re a Buyer in the Metro Portland area (including: Beaverton, Tigard, Hillsboro, Lake Oswego, Downtown Portland,) and contemplating a purchase, talk with a Buyer’s Agent . . . better yet, talk to an ExclusiveBuyers Agent. Exclusive Buyers Agents do not work for listing brokerages or Sellers. An EBA’s fiduciary dutyis: 100% BUYER REPRESENTATION . . . 100% of the Time.
Author Bio: Carla Muss-Jacobs is the Principal Broker/Owner of EBA Portland, LLC an Exclusive Buyer Agency representing Buyers in the Portland Metro real estate market since 1999.
The Sellers have their own agent ~~ Why don't you have yours?
Carla Muss-Jacobs practices the TRUE FORM of Buyer Agency ~~ Exclusive Buyer Agent. Her office/brokerage never takes listings and never respresents the Seller. Exclusive Buyer Agency is the BEST form of legal real estate representation a Buyer can have. There is 100% Buyer Representation - !00% of the Time. There are NO CONFLICTS OF INTEREST and there is no possibility of ever having YOUR Buyer Agency comprised. When buying a house -- it's important to know who is working for you!!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.