There are several strategies a buyer can use that don’t cost money but can still lead to success in real estate. What defines a win?
- Securing a property in competition, without paying way more than the competition.
- Getting a property for less than the competing offers.
- Finding a property that is particularly well suited to your life.
Most sellers decide whether to accept an offer based on their net price. The net price is the total in the seller’s pocket after closing, once all outstanding mortgages, municipal fees, taxes, agent commissions, and any other liens on the property have been paid.
If a property receives multiple offers, being organized can be your secret weapon.
When two offers are similar in price and terms, the one that’s better presented is more likely to prevail. Sellers care about more than just the price—they want to feel confident the sale will close on time. It’s an added bonus if the seller also likes and respects you.
What is an offer presentation?
Buyer’s agents communicate with the seller by submitting an offer packet to the seller’s agent. This offer packet should be neat, clear, and address all the questions a seller might have.
The Offer to Purchase agreement—the contract form used for an offer—covers the basic details: How much? When can they close? How much is the down payment? How quickly can inspections be completed? How long until the mortgage is committed?
But sellers often want to know more. This is where a well-prepared offer packet gives buyers an advantage. Sellers who have all the information they need from the start are more likely to say “yes” to an offer.
- Sellers want proof that the buyer can pay. This typically comes in the form of a pre-approval letter (or two) or proof of funds for a cash offer.
- Sellers also want reassurance that the transaction’s paperwork will be handled smoothly. Buyers can show this by completing any forms the seller’s agent has provided. These might be required state disclosures, the seller’s Disclosure of Property Conditions, or even a list of improvements or a personal letter from the seller that requires acknowledgment. Be sure to comply with these requests.
When two Offers to Purchase are presented, the one that gives the seller the most confidence in a smooth transaction will likely be accepted. Submitting a complete and organized offer packet should be the standard practice for any professional buyer’s agent.
How can I be confident that my agent knows how to make a good Offer to Purchase presentation?
When you choose an agent, ask about how they represent you at the point of Offer to Purchase:
- How do you put together an Offer to Purchase?
- How do you send an Offer to Purchase?
- What do you include?
- How will we be communicating while the Offer to Purchase is being negotiated?
If the agent you’re interviewing says they simply email the Offer to Purchase to the seller’s agent and wait for a response, you can find a better agent. Your negotiation will go more efficiently with an agent who provides the seller’s agent with all the necessary information to show that your Offer to Purchase comes from a well-prepared and motivated buyer.
In conclusion
In the competitive world of real estate, success often depends on more than just the offer price. By presenting a well-organized, complete, and compelling Offer to Purchase, you can stand out from the crowd and give the seller confidence in your ability to close the deal smoothly. Partnering with an experienced buyers agent who knows how to effectively communicate and showcase your strengths as a buyer can make all the difference. In the end, being prepared, proactive, and professional is the key to securing the right property without unnecessary costs.