In the current world of residential real estate, where there are frequent cases of competitive bidding by potential buyers on a single property, it’s smart to think before you send an offer!
We recommend that you do your homework before making an offer, and ask for the things you want in the offer – in detail.
Asking a ton of questions in the actual cover letter to an offer shows a lack of professionalism and makes the agent and the client both look lazy and incompetent. Not a great way to get a positive answer.
Below is a sample of emails I recently received in a multiple offer situation.
See if you can guess which offer was the best and strongest. Go through all the offers, and then get the “answer” at the end. We think that you’ll probably figure it out!
We had a nice showing tonight at _________. I am sure you have had a lot of activity on the property.
- Any offers?
Also, the people I am working with would like to know the:
- Age of the roof?
- Age of the mechanicals, hot water heater, ac/furnace and the like?
- Some of the windows appear to have been replaced: why and how long ago?
- Is the AV equipment in the basement staying? Keg-o-rater?
Finally, does the fireplace work and has it been serviced?
Thanks in advance for getting back with the answers to these questions.
Offer # 2
Here is the offer.
It’s obvious the home has been very well maintained, decorated with impeccable taste and shows like a model. However, as you will see the offer is for less than the list price. It looks as though a new garage door is needed and maybe a new roof in the near future. We think it is a very good offer considering there are several foreclosures in the area and the highest closing of late has been under $200,000 for a home with much more square footage.
My client will be able to sail through the financial process quickly as he is a very qualified buyer and has offered $1,000 in earnest money.
I have attached the offer, agency disclosures, property disclosure, acknowledgement and pre-approval letter.
Here’s a purchase offer for ___________
Think that you have the right answer? Check out below and see if you’re right! The tactics in Offer #1 and Offer #2 are very common and a great way to make sellers unhappy.
If you ask all these questions, the accompanying “offer” looks more like a negotiating ploy. If the realtor/prospective buyer wanted to go low, they should have done so. If they wanted all the “stuff” listed, put it in the offer and THEN wait for the negotiating to begin.
Are you kidding? If the letter is designed to insult the buyers, it does a great job. If they are trying to beat the price, just go ahead and make the offer. If there is more conversation, THEN you can make the negative comments.
In both Offer #1 and 2, the prospective buyers look weak, unrealistic, and tough to deal with.
This is clean and simple and so was the transaction. It’s a great example of “less is more” and the benefit of keeping things simple.