Preparing and Presenting Real Estate Contract Offers - The listing agent is the gateway to the contract presentation. Obtain available disclosures in advance and quiz the agent for the seller’s closing date needs, if any offers are currently being negotiated and if any offers were refused. You might be surprised with the information you can get by being professional.
Prepare and inform the buyer about the contract preparation process. Explain the contract presentation process, what you do and what the listing agent does. Provide a buyer’s market value analysis and be sure to explain the seller’s options as well as discuss multiple contract situations.
The Three Parts to a Real Estate Contract Offer: Price, Terms and Conditions. When negotiating a real estate purchase offer, the seller wants to sell at the highest price and the buyer wants to buy at the lowest price. However, price is not the only factor in negotiating a sales contract and obtaining a signed contract. That is why it is called negotiating the contract.
The Challenge: While price is an important consideration in contract negotiation, it is not the only factor in obtaining acceptance. Selling agents must understand that the structure of the contract, terms and conditions, more often than not, can be what makes an offer acceptable and is the most overlooked aspect when preparing a contract offer and in contract negotiation. Selling agents need to provide guidance in helping their buyers help themselves in structuring a contract, terms and conditions that are not questioned by the seller or their listing agent. The longer it takes to obtain acceptance, the more of a chance there will be additional offers for the seller to consider.
Important Considerations: Real estate agents should keep in mind what type of pre-approval letter is most beneficial to the situation, the amount of binder and earnest money deposit, mortgage contingency date, inspection clauses and dates in addition to the closing date as well as other contingencies.
There’s no secret to working with buyers and selling estate. It’s your job, so know what you need to know, put it into practice and be professional in offering real estate services to buyers.