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The Importance of Written Proposals - Clarify things up front!

By
Services for Real Estate Pros with Vision Quest Virtual Tours

Have you ever had a situation where what you said and what someone else heard was not anywhere close to the same thing? My parent’s favorite quote after 52 years of marriage is “I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant.” (Robert McCloskey)

In the past, we relied on emails and phone calls to clarify information and then sent an invoice once we came to terms and hoped to be paid when we arrived to shoot the virtual tour. While this worked almost all the time, we did run into a few situations where the client did not understand some aspect of our terms even though I thought I had explained them clearly. This puts both us and the client in an awkward position and has the potential to cause hard feelings down the road.

We started using written proposals this year to make sure that what we say and what our client hears is the same thing. Our proposal outlines what we are agreeing to provide and the terms under which we agree to provide it. Once we have confirmed a time and date to shoot and agreed upon a price, I send a confirmation email with the proposal attached and ask that it be signed prior to the shoot. The proposal is not a lengthy contract and is certainly not binding but it does outline our expectations in a clear, concise bullet form. If there are questions about our terms, I want to be able to address those PRIOR to showing up to shoot.


Vision Quest Virtual Tours provides high definition 360 degree virtual tours all over the United States.  While we specialize in healthcare, hospitality and education, our virtual tours are a great marketing tool for any business or real estate listing.

Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is a great post and a reminder that it is good to outline one services in writing.  It does help avoid misunderstandings right from the beginning.

Feb 07, 2012 02:15 PM
Kathy Clulow
Uxbridge, ON
Trusted For Experience - Respected For Results

Greg and page one of my web guy/hubbies favorite quotes

 “I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant.”

Feb 07, 2012 02:22 PM
Luis Iniguez
Option One Real Estate - Fontana, CA
Search Inland Empire Homes For Sale - Short Sale Agent

It's always best to outline the terms of any agreement any work is started.  This way everyone is aware of all the terms.

Feb 07, 2012 03:17 PM
Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

I feel I need to do this with some of my clients. Just a short bullet point agreement so when they say we never talked about that I can pull it out and say, yes we did.

Feb 07, 2012 03:30 PM
Laurie Clark CRB Angel Realty LLC Your Monument Realtor 719-502-6572
CRB-CCSS-ASD-HBS-RSD-Denver Short Sale Agents - Monument, CO
Angel Realty, LLC

Congrats on the feature! This was a great quote:  “I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant.” Having information and contracts in writing is an excellent move. Thanks for sharing and have a great week.

Feb 07, 2012 03:31 PM
FN LN
Toronto, ON

Hi Greg and Paige - Putting agreements in writing helps to minimize misunderstandings.  Hopefully, your clients read the contracts before signing.

Feb 07, 2012 04:42 PM
Beth Paterson
Reverse Mortgages SIDAC, LLC, NMLS #1790592 - Saint Paul, MN
CRMP, NMLS #342859

Love the quote! Haven't seen it for awhile and didn't know the author so appreciate your post.   Putting things in writing and claifying what the actual terms are is so important!

Feb 07, 2012 05:12 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Absolutely Greg, it's easy to forget some terms and numbers when presented orally.  Good to have on Voice Mail at times, but nothing beats a written proposal.

Feb 07, 2012 10:33 PM
Charlie Dresen
The Group, Inc - Steamboat Springs, CO
Steamboat Springs, CO e-Pro

Anything number related that's going to be invoiced is much better off in writing. Now that you have the format and you've made it simple to understand, the process should be easy and efficient to deliver it, as well as clear for the recipient to respond to. It'll save time and potentially hard feelings down the road for sure.

Feb 07, 2012 10:51 PM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

I agree with so many of the comments, I think the best way to protect your assets is to have a paper trail. That way there is no confusion when the client or the provider of service needs clarification.

Feb 07, 2012 11:08 PM
Richard and Jean Murphy
Harborview Properties - Portland, ME
(207) 712-4796

Clear understanding of the terms is essential in any business. Always good to have it in writing and most times (in real estate transactions) an Addendum to the contract is best.

Feb 07, 2012 11:19 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Graig and Paige, this is a very good point. I send a proposal to every prospective selling/leasing client. It establishes the ground rules and there is no question about the terms of the listing contract. Saves a lot of time and weeds out unlikely clients.

Feb 08, 2012 12:38 AM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Totally makes sense and you certainly dont want to get to the house and have a problem.

Feb 08, 2012 01:36 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

We send and receive to each other all day long...but are we connecting? Anything in writing serves as a consulting piece that aids in clarity...good post and thank you

Feb 08, 2012 02:12 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I try and operate by email whenever possible...that way it's clear to all and I have a record.

Feb 08, 2012 03:06 AM
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

People often get upset that I will not do verbal offers. Put it in writing so that I know that you are serious and so there are no misunderstandings. Verbals will bite you on the bottom!

Feb 08, 2012 03:42 AM
Barbara Hensley
RE/MAX Properties - Rockwall, TX
Homes for Sale in Rockwall County, Texas

I do not do verbal offers.  Put it in writing and sign it.  This works equally well for the buyers as sellers do not take a verbal offer seriously.  Nice feature! 

Feb 08, 2012 04:37 AM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Greg and Paige:

I need to tattoo that saying on my forehead.  My husband is always misunderstanding what I am saying.  Or maybe I am saying clearly what I mean.  It would certainly save us time.

Feb 08, 2012 09:22 AM
Bryan Robertson
Los Altos, CA

I always try for clarity so whenever possible I write down what I'm thinking and send it along in an email so there's a trail for us to all refer back to.  If they don't like that, then a letter of intent or term sheet is the next best thing.  Whatever it takes to make sure there are no misunderstandings.

Feb 08, 2012 09:57 AM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Greg and Paige - I expect that handling your business that way will lead to many fewer complications and issuess.

Feb 08, 2012 02:46 PM