Writing and Presenting Offers

We all have written offers. We all have had the "lay-up" deals that magically come together but opposite seems to be the "norm" ... or at least what we remember in full detail.

So, what can you do when writing an offer to be fair to your buyers but still give yourself the best shot with the sellers (or the listing agent for that matter)?

This business is not rocket science but here's a few comments that may help you out.  SELLERS!!!  Pay attention here too because this directly impacts you.

Of course, you have an obligation to represent the wishes of the buyers when you write an offer for them. That said, I always encourage you to play Devil's Advocate and make sure they know ALL of their options, terms and potential consequences before you write the offer.  What do I do?  It's detailed but certainly easier than you might think:

1. As soon as you know you have a buyer interested in writing an offer on a property ... CONTACT THE LISTING AGENT IMMEDIATELY!!!  If your buyers like the property, there is a good chance that other buyers are scoping it out as well. Make sure the listing agent is expecting your offer because this will buy you a little time.  NO, it does not mean that you get to sit back and be lazy and take all day to write the offer ... it means that you may be able to get through your open house or finish your commute from the showing before the agent expects to see it.  Calling the other agent also lets them know that they may need to push their meeting with the sellers back a little so be able to include your offer (assuming it's a competitive situation).
   1. In this conversation, make the other agent feel like you are on their side ... "work a little for the seller" ... I ALWAYS 100% of the time ask the following question: "Hey [listing agent], I like to keep things clean and simple so we don't do this song and dance countering the little things that could have been avoided. Are there any special terms aside from price that the sellers are expecting to see?"
   2. The second question to ask is whether or not they have any other offers of course.
   3. Last, and there may be mixed reviews here, but I always like to hear the other agent's response to the question "hey, so before I let you go ... and I realize you may not answer this question ... but are there any pointers you can give me on where we need to be to just lock this deal up and get it done?" You'd be SHOCKED at how often you just get the direct answer and can write the exact offer the sellers will knowingly accept. NOTE: No, it doesn't work every time and ... YES, when I am the listing agent I hold onto this information tighter than the agents I ask that give it all up ... but when I work for the buyer, believe me ... I'll ask ...
   4. Thank them for their time and information and let them know you'll have the offer to them shortly.
2. Strangely, your buyers are the second call (instead of the first) ... because now you have information from the other agent that you can include in your discussion as you go to write the offer. In NO WAY does this mean that you just write the offer that the other agent suggested. It just means that you have information now that many may not have because they never asked. You can talk through different scenarios and honestly ... you likely can tell where the other agent may have added some "fluff" ... but at least you know.
3. When speaking to your buyers, I always tell them ... "I'll write the offer at whatever you want, with whatever terms you want ... but I'll give you my opinion. On that note, REMEMBER ... YOU HIRED ME TO GET YOUR OFFER ACCEPTED ... NOT COUNTERED."
   1. People, you can lose the opportunity over terms in a counter offer ... PRICE INCLUDED!
   2. Write at the NO REGRET PRICE ... this is the price that the buyers are a) comfortable being at financially; b) the price they can feel like if they get accepted they are not going to wake up wondering if they could have saved $1,000 and c) the price they are willing to feel good about even if they lose it because they won't question if they should have offered $1,000 more if they don't get accepted.
4. When you send the offer, call the agent to let them know it was sent. If they don't answer, leave a message and text them AND send an additional email and let them know the offer was sent and that if they get "this" email and not the offer then to contact you immediately (maybe your file size was too big on the attachment).
   1. PS ... just attach the offer as ONE file and not ten ... PLEASE!
5. Last, I ALWAYS think I am the best one to show my listings ... YES, even to you and your clients ... that's because it's my listing and I know more about it than you do. LIKEWISE, I am happy to present my offer in person. DO IT!  AND SELLERS ... DON'T BE AFRAID TO LET A BUYER'S AGENT DO THIS. Yep, it sure can be akward but it's not just about your offer.  IT'S ABOUT YOU! Even the sellers don't think about that sometimes.
   1. YES, it's about the offer ... YOU can answer questions about your client's offers and explain any terms that you perhaps added in for a specific reason/need that you can get some grace on instead of having the listing agent just say "well that's dumb ... not worth dealing with" ...
   2. BUT, like I said, it's not JUST about the offer ... this is your chance to show the seller that you will be easy to work with too because you are buttoned up too.

In summary, encourage your buyers to keep the offer clean and simple. No one has ever asked me if I could help them overpay for a house ... I'll tell you if the seller's price or requests are out of line, unreasonable and/or unlikely to apraise ... but other than that, know that I'm working to get the best deal for my buyers ... I always tell them that we just want to make sure they are not paying more than market value and everything else is a bonus.  You can feel good about writing an offer at a lower price because that's what you were told to do, but writing low and never closing doesn't get the deal done and makes you no hero to anyone. Call the listing agent first and know who and what you are working with to help you with this game of chess.

I always welcome thoughts and feedback ... I've never made the claim to know it all ...