Buyer's Agents: Write an Ironclad Real Estate Purchase Offer

Any real estate agent who has been in residential sales for several years has probably seen all types of offers: wonderfully written, terribly written, and just plain weird. And I'm not talking about the purchase price or terms. I'm talking about the contracts and other documents.

How do you know if your Buyer's purchase offer will be accepted? You do NOT know. But there are some things you can do to ensure that you have given your Buyer the BEST possible shot to obtain their dream property. And it all starts with the purchase offer.

Here's a few tips, based on my too-much-experience with poorly written contracts:

1. Complete all the blanks and boxes! I know it seems basic, but I've seen way too many incomplete contracts. If I'm the Seller's agent, and I receive a contract with info missing (who's going to pay for the pest control report?), well guess what. That will not be in your favor. I will interpret the missing field in the SELLER'S favor, and you will see that reflected on the counter offer. Your buyers may not be too happy about that...

2. Complete all the fields available even if you have to research the info (reiteration of #1). For instance, your name, phone, address, email, and real estate license number. The information that you do NOT have you should LOOK UP. For example: the other agent's info; the seller's legal names (you can get that from the tax records). Do not leave the seller's names blank on a purchase offer!

3. Call the listing agent before writing the offer. Nothing will blow an offer like putting in a service provider that the seller doesn't want to use, and creating a needless counter offer. Communication is the key! The listing agent is going to be your best buddy, if the seller accepts your offer, because you'll be working closing with the listing agent for at least a month. So take a few minutes, make that phone call, ask questions to find out what's important to the seller, and start building that critical business relationship. Besides, if you know how to ask the right questions, you just may find out some great tips that can make your offer more competitive than other offers.

4. Read the listing description. Find out what the seller is offering. Have they specified an escrow company? Is there a septic tank? Which appliances are included? Don't write an offer including the washer & dryer when the seller has clearly stated that they are not included. Follow the instructions given in the listing and don't frustrate the seller needlesslly, by making them write a counter-offer for things you should have observed.

5. Date all the pages. In California, our C.A.R. contracts have the date on the SECOND page of each contract, so it's often overlooked. But double-check to ensure that you've included the date on each page of each document.

6. Do NOT include more documents than necessary. For example, in California, our Purchase Offer is 8 pages long, plus a Buyer's Inspection Advisory adds 2 more pages. Then if you include a WPE (pest control form), that's another page; if it's a short sale the SSA (short sale addendum) adds another page. Already you're at 12 pages minimum. So if you want to include a 10-page SBSA disclosure, that is fine; but it doesn't have to be part of the purchase offer. If you include it as an addendum to the purchase offer, it just means more paperwork that the sellers (& the buyer's lender, & the seller's bank, if it's a short sale) have to analyze and process as part of the offer. So unless it's needed, stick to the basic contracts & addendums as recommended by your broker. Why give lenders more opportunities to analyze excessive documents and perhaps deny your sale?

7. Include the Buyer's deposit check (or copy of it) and their pre-qualification letter. That goes without saying. If there's a reason you can't include them, write a brief explanation.

8. Balance price with terms. If you're going to ask for Seller concessions, such as asking them to pay your closing costs, advise your buyers NOT to submit a low-ball price. Don't insult the Seller, who probably won't consider any offers from you after that. Remember: price OR terms. Not both.

9. Make sure the Buyers initial and sign each and every page needed. Then double-check. It's easier to verify it while they're still there in the room; after they go home, it's much more difficult to chase them down to get signatures.

BONUS TIP: Write an emotional letter about your Buyers. Or better yet, let the Buyers write the letter! You may be surprised to learn that many offers are accepted on the basis of emotional decisions. Yes, every seller wants top dollar and great terms. But many sellers love their house and want to help a deserving family who will take care of their new home, just like the sellers did. Here's an example:

Dear Mr. & Mrs. Seller: We are a young family with 3 children in school and this will be our first home purchase. We have saved our money for 5 years to buy this wonderful home! Our children will be able to remain in their schools because we already live in this neighborhood. Our 7-year-old is excited to have a back yard so he can get a puppy. We love the brick fireplace and the charming breakfast nook, and we promise to take good care of this lovely home for many years to come.

Buyer's Agent: Help me to help you! Take the time to review, re-review, and have another agent review your offer AGAIN, line-by-line, before submitting. It's worth an extra 30 minutes to do it right the first time -- and to ensure that your offer won't be rejected due to negligence. I can't guarantee that ALL your offers will be accepted, but if you follow the steps above, you have increased the chances ten-fold! And you are doing a big favor for your Buyers.

Agents, home buyers, and house sellers: feel free to contact me at any time. I welcome any and all inquiries. Email: RPBrown @ Realtor.com

Regina P. Brown
Broker, Realtor®, e-Pro
Author of eBook "Stop Foreclosure Fast: Solutions to Save your House"
Author of forthcoming book, "Virtual Office Guide for Business Professionals: Work & Profit from Home"
Join & post to my NEW ActiveRain group at http://activerain.com/groups/virtualoffice

Text copyright © 2009 R.P. Brown, All Rights Reserved