"DRAFTING" and "CRAFTING" . . . an Offer

By
Real Estate Broker Owner with BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time Licensed State of Oregon

Professional writers will often call 'writing' their "CRAFT." 

"A craft is a skill, especially involving practical arts. It may refer to a trade or particular art." cited CRAFT

When we "DRAFT" a document -- a contract -- putting "pen to paper," do we merely draft that, or do we also apply some crafting?

The reason behind each of the offers we write on behalf of our Buyer clients is to get the 'best terms and conditions' possible.  We know, when dealing with the Sellers, they have their motivations as well.

With the blending of both elements, I have found it really is an 'art form' when putting in the terms and conditions for Buyers.

It can become complicated.  And the ability to understand the Buyers financial goals is paramount. 

For example, a recent transaction involved first-time Buyers.  They had some money saved, but felt that they were more comfortable with having their funds liquid.  The price of the home was good, but the closing costs -- which always amount to Buyers coming to the table with hard funds -- was something to be considered.  I suggested the following:  a $5,000 reduction in the list price, and $5,000 in Seller's concession of Buyers' closing costs.  The offer was accepted as written, effectively saving the Buyers $10,000, overall.

CASH BUYERS: Sometimes cash Buyers' offers can be tricky.  The ability to pay ALL CASH can be a tip off to the Sellers that the Buyers have money.  The fine art of knowing where the list price is, compared to overall comps is important to me when 'crafting' a cash offer. 

  • In a recent transaction, I had all cash Buyers.  They could have paid the full list price, but of course, I also try to get the best terms and conditions.  They wanted to offer $10,000 below list, but I had studied the market.  But, the Sellers had moved out, they had purchased another property, and were floating two mortgages.  My suggestion was:  Offer $20,000 less, and see if they counter.  They did not, because they knew the Buyers would be able to close.  In crafting that offer, we also stipulated a TWO WEEK CLOSE.  The offer was accepted as written, effectively saving the Buyers $20,000.

FINANCE BUYERS:  When Buyers are looking at their total dollar amount, closing costs are closely evaluated.  Preparing a clean offer, supporting it with the Buyers' PRE-APPROVAL, having all their ducks lined up, helps the Sellers determine the Buyers are prepared to close.  With finance Buyers, crafting an offer might mean submitting full list but with closing costs paid by Seller.  In this market, when list prices have dropped, negotiating both list and closing cost can be done, it is important to look at the HISTORY of the property.  Sometimes, I see that the Original List Price was far above what the current list price.  In that case, I explain to the Buyers that in the Sellers' position, they have already "reduced" their list, and might not be in the position to drop price further.  Better to negotiate the hard closing cost dollars, and leave the list price as is.

There is SO MUCH MORE to crafting an offer than the above can ever possibly detail.  And we all know it really is an 'art form' to preparing an offer and getting it accepted -- at least I think it is!

Posted by

Buyer Focused ~ Buyer Results

 

Representing Buyers in the Portland Metro Real Estate Market | Clackamas Multnomah and Washington Counties | Since 1999

Carla Muss-Jacobs, REALTOR®, ABR, CEBA, ePro
Principal Broker/Owner

Direct: 503-810-7192 | BuyersAgentPortland.com | Carla@BuyersAgentPortland.com

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Rainmaker
932,524
Greg Nino
Houston, Texas
RE/MAX Compass, formerly RE/MAX WHP

Great reminders Carla. Well written as always! ;)

February 11, 2010 12:49 PM
Rainmaker
588,963
Jim Hale
On the Move for You! - Eugene - Springfield Oregon Real Estate
ACTIONAGENTS.NET

Carla -

Better to be crafty than drafty, I guess.

 

Of course, it depends on the market.  Prices in some price ranges here are trending up not down.  Crafting low can cost the sale - if there is a second offer - which there surely can be - for a well-priced home.

If a seller has priced to market instead of aspiration, a full-price offer can certainly be a well-crafted offer.

 

As you pointed out, you crafted your offers after looking at the market.

February 11, 2010 03:43 PM
Rainmaker
437,009
JL Boney, III
Columbia, SC Real Estate
Russell and Jeffcoat

Knowing what you are doing can certainly save your clients some money. Knowing your market and how to properly write the offer is so important.

February 11, 2010 08:50 PM
Rainmaker
477,123
Melinda (Mel) Peterson
The Naked Blogger 541-659-1620
Real Estate Cafe LLC

Carla ~ And it helps to have some brains behind the craft and draft :)

February 11, 2010 09:18 PM
Rainmaker
1,202,853
Carla Muss-Jacobs, Principal Broker/Owner
Buyer Focused ~ Buyer Results
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time

Hi Will . . . that's a GREAT way to put it!!

Hey Carra -- just stepping around the cow pies on the trail to a happy, accepted offer!! ;-)

Hi Greg . . . {blush}

LOL Jim . . . good to read your area is trending upwards, at least in some areas!  Some is better than none!! You crafty one!!

Hey JL -- I couldn't have said it better myself.  Thanks for summing it all up NICELY!!

Hi Melinda . . . I'll have a side of BRAINS with that!  LOL!!  You're right!

February 11, 2010 09:40 PM
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Carla Muss-Jacobs, Principal Broker/Owner

Buyer Focused ~ Buyer Results
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Additional Information

Author Bio: Carla Muss-Jacobs is the Principal Broker/Owner of Buyers Agent Portland, LLC an Exclusive Buyer Agency representing Buyers in the Portland Metro real estate market since 1999.

The Sellers have their own agent ~~ Why don't you have yours?  

Carla Muss-Jacobs practices the TRUE FORM of Buyer Agency ~~ Exclusive Buyer Agent.  Her office/brokerage never takes listings and never respresents the Seller.  Exclusive Buyer Agency is the BEST form of legal real estate representation a Buyer can have.  There is 100% Buyer Representation - !00% of the Time.  There are NO CONFLICTS OF INTEREST and there is no possibility of ever having YOUR Buyer Agency comprised.  When buying a house -- it's important to know who is working for you!!