 |
 |
 |
|
||
|
|
Presenting the Offer: 5 Tips for Getting Prepared Once you have a written offer in hand, your next negotiating challenge is getting the sellers to accept it. As with many things in life, success rests largely on sound preparation. 1. Update your comparable market analysis. Extract new data on list prices, sale prices, and terms for comparable properties in the area, especially if the property has been on the market for more than 30 days. 2. Examine buyer qualifications. Buyer eligibility is just as important as the price and terms of an offer. Sellers won't take their home off the market without some assurance that the buyer can perform. Have details about downpayments and loan prequalification. 3. Choose a venue. Select a time when all parties who need to approve the offer can be present and a place with minimal distractions. Your office gives you access to files and copying facilities; other experts suggest the sellers’ home, but only after the children are in bed. 4. Anticipate objections. View the pros and cons of the offer from the sellers’ point of view. Gather the information you'll need to respond to objections—market analysis, seller's net sheet. 5. Estimate sellers’ costs. Calculate probable closing costs—mortgage payoff, attorney’s fees, transfer taxes, tax and utility prepayments, and your commission—so that sellers can see what they will ultimately realize from the sale. Source: Excerpted from "Successful Strategies for Real Estate Agents," by Floyd Wickman ( Executive Press, 1987) Sure-Fire Strategies for Presenting an Offer
Source: Adapted from “How to Present and Offer,” by Danielle Kennedy (The Real Estate Professional, May/June 1992) 4 Elements of a Standout Offer There's more to a deal than price. Master trainer Mary Johnson shares these ideas for making offers that will please sellers. 1. Flexible timing. A buyer who will consider options about closing and move-in dates is in a good bargaining position. 2. Well-qualified buyer. A preapproved buyer provides much greater security that the deal will close easily and rapidly. 3. No contingencies. A buyer who doesn't have to sell another home or who is willing to waive all contingencies helps give the deal a green light. 4. Substantial earnest money. A buyer’s willingness to make a substantial earnest money deposit offers a competitive edge and is a convincing argument that the buyer will complete the deal. An offer of $200,000 with $15,000 earnest money deposit to the seller will probably take precedence over the same offer with only $1,000 in earnest money. More Tips for Presenting Buyer's Offers
Handling Problem Offers > |
Keep It Legal If you represent the seller, you should only prepare a comparable market analysis for a buyer-client upon request. And if you do prepare a CMA, you should not use it to provide advice that will assist sellers in price negotiations. To do so might give the buyers a negotiating edge and violate your duty to put the interests of the sellers first. -Phil Mitsch, “Negotiating Buyer Offers,” Michigan REALTOR®, June/July 1995 Keep It Legal Remember if you are the listing agent or a subagent to the seller, your principal fiduciary duty is to the sellers, even if you are also working with the buyers as customers. |