Writing a winning offer!
As a listing agent, receiving a well written offer is indicative of a serious buyer, a competent agent and usually reliable financing. These offers are clear, complete, and a pleasure to review and inspire confidence in the listing agent and the seller!
So how do you do this?
As a buyer, you and your agent should see the property, Ideally together, to discuss pros and cons and for your agent to get a good idea of why this property works for you.
Preferably see the property early on… this way you have PLENTY of time to thoroughly review disclosures, do research.. like visit the city building department… and book any pre-inspections or pre book any post ratified contract inspections so you can make a VERY strong compelling offer!
Your agent will be checking in with the listing agent to get answers to questions on the disclosures, interest in the property and sellers expectations. Buyers agents who check in demonstrate their buyers have paid attention to the disclosures and that is a plus to listing agents.
Review the disclosure package both on your own and with your agent. Allow time to go through all the documents , even the boilerplate ones, on your first offer it helps to do this IN PERSON. Property disclosures often need further discussion.
It often helps buyers to CALL the inspectors directly. The reports frequently have a laundry list of items .… if you speak with the inspectors they can put some items in perspective, i.e,” Yes, address this ASAP” or “you can wait on this ”.
Your agent will pull recent sales (comps) that provide insight into the potential value, not only for other buyers but data an appraiser might take into consideration. It takes time for an agent to select the most appropriate comps.
Your agent may need time to call agents who listed some of the recently sold comparable properties to get additional insight. E.g Did it have high reports? Was there anything unusual that caused the property to sell exceptionally high or low.
Your agent may want to call other listing agents who have potential comps in contract . This is crucial information with many listings selling way over asking price. If the property closes soon it may be a comp.
Your agent may also be consulting with a) the previous listing agent on this property for additional information, b) trusted colleagues either within or outside their brokerage who might have insight ( and NOT competing buyers!) which could help these buyers prevail. There is frequently a lot of detective work to be done!
Buyer and agent should both contact the buyers lender if there is to be a loan. Some banks need 1-2hrs to get a preapproval letter, others take a few days… principles and agents want to be 100% clear on what financing terms will work and where the risks are in order to structure a solid offer.
As a buyer you will ideally have also answered any questions regarding insurance, spoken with neighbors and done significant due diligence prior to writing. If the offer is Non-contingent… the norm in many markets.. you do want to have NO deal breaker QUESTIONS UNANSWERED prior to writing your offer!
Buyers often do best writing a love letter! I know… this sounds corny …but anything that conveys CONFIDENCE in your willingness and motivation to complete the sale is a PLUS in your favor. It costs you NOTHING to do this!!
Your agent will probably write the offer and send you a draft to review the terms with you. The electronic signing programs move quickly… you want to make sure to have READ the contract before signing and have helped catch any revisions!
Try to avoid a FIREDRILL!! It will make your life as a buyer less stressful and probably more successful!
As always, I’m happy to be a resource for those considering a move and to offer advice in the current environment!
- Jackie
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