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Who are doing reverse offers?

Reverse Offers? How does that works?

Reverse offers are the sellers offering the property to a buyer that may have shown interest in the property. The agent fills out the purchase contract as normal and then sends the offer for the buyer to look at and hopefully sign or negotiate a deal.

What a creative way to spur interest in a property. If you submit the offer to the buyer, contractually he/she has to present the offer. It gets your home in front of the buyer again. And, if you are agressive enough maybe you can sell your home!

How many people do you know are doing reverse offers? Are any successful?

Posted by Rob Jones Greater Phoenix Real Estate Broker on 11/17/2007 09:10 AM

Comments (13)

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13 Comments on Who are doing reverse offers?

NOV

2007

Ok nice idea BUT how do you know the buyers name? Buyers are anonymous in my area and because of confidentiality Buyers Agent should not disclose buyers name.

I hate to be a buzz kill but am curious.

I always have a pre-prepared contract ready for signature at Open House. It worked one time. The buyer took it, gave it to their agent who didn't accompany them to the Open House and it came back with only the price changed, but acceptable for the seller.

I believe it's a great idea. However, if the buyer has visited the house with an agent, I think you need to submit the contract to the buyer's agent. A minor inconvenience.

Keep thinking out of the box.

Interesting but never tried, I think I will take it for a test drive.

Take care!

RJH

i have never heard of this before. I am wondering how you would present the offer? Do you call the buyers agent and get the info you need? Unless you would have both sides of the deal how would you know so much about the buyers to be able to even think of writing a contract?

In our area, when you download your lockbox key for a new code it uploads all the homes they gone to and thus the seller's agent has a record of the buyers agent. If you can't find the name of the buyer at least you have the buyers agent and with the address shown on the contract the agent should know whom to present the offer.

Rob

Interesting idea. Has anyone used it yet?

I need to think this thru, but I think it's OK. More than that, very creative. In this market a good way to advance the ball.

Thanks

I haven't tried it but I think it's worth a try.

Buyer's agent may like the idea to motivate the buyers and may be willing to give you the name to put in the offer.

What is the the threat? They can always reject it. I think the buyer's agent will feel more threatened.

Ralph

Rob,

This is an awesome idea, you are definitely thinking out side of the box.

I just started using reverse offers this past month and I have had great success with it. This is how we work with it and the reasoning behind it.

1: Sellers love the idea because it is outside of the box. Even if the offer isn't accepted at least you are trying to get their home sold and not sitting back to wait for an offer.

2: Write the offer as if you were writing it in the best terms possible for a buyer you were writing an offer for. Don't worry about including the Buyers names in the contract, the Buyer agent can add them. We suggest our sellers lower their price by approx 2 percent and make the closing date negotiable.

3: We have a template letter explaining the offer to the Buyer agent along with an incentive for them to bring the offer in by a set time. This incentive is usually between a $1k to $3k bonus. We make it clear that this offer is the bottom line for our seller and therefore we aren't interested in counters. However we just put a deal together by applying the Buyer agent bonus to the buyers bottom line (didn't make a difference to our seller).

I know this is a pretty brief description of how our reverse offer works so please feel free to contact me if you have any additional questions.

Good Climbing!

Bob

Thanks Bob for getting into the details of it a little more. I like the thought of addressing a letter to explain the reverse offer a little more than just giving an offer. I'm glad to hear they are working well for you. I plan on writing one in the next couple of days. I don't recommend this for evry person that walks in the door but if their is someone that has returned to the property a couple times I think this is a no brainer.

Rob

DEC

2007

I just wrote a reverse offer this morning and will present it to the buyer's agent later today. The buyer's agent encouraged me to do it. The buyer's love the house, it is number one on their list, they have a large downpayment and don't need to sell a home in order to purchase. The buyer's agent emailed all pertinient information about the buyer's and their terms. In this case, the buyer's agent stated that this would help get their buyers off the fence and that it will probably work in this case. I think we will be seeing more of the "Reverse Offer." Why not? Whatever works and gets the job done! Angelica

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