"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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100% Buyer Representation ~ 100% of the Time

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drafting an offer crafting an offer

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Rainer
30,121
Art Marine
Academy Mortgage

Let me help you...don't let your customers pay cash...it will put me out of work

February 10, 2010 05:14 PM
Rainmaker
208,442
Andi Grant
First Time Home Buyers Los Angeles, Long Beach
310-508-4354 | FirstTimeHomeBuyerRealEstate.com

Good stuff Carla!  I try to get everything I can for my buyers!  I try to structure it in a way where the response is not a hard no but a "yes" or at the worse a "maybe."

February 10, 2010 06:57 PM
Ambassador
1,405,509
Anna Banana Kruchten
Phoenix Real Estate Agent, CRB, CRS 602-380-4886
Phoenix Property Shoppe

Right on Carla - there are so many many ways of crafting offers that are a big win for buyers. You say this is an easy to understand way.  Excellente!

Featured in BananaTude

February 10, 2010 08:30 PM
Rainer
114,392
Renee L. Norton

I agree with you.  Crafting seems a more appropriate term for what we do. I try to really listen to what the agent for the other party has to say...it often reveals what is most important to their client and helps me to craft the best offer for my client.

February 10, 2010 08:38 PM
Rainmaker
1,248,794
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 Art -- if the buyers want to pay cash, who am I to say otherwise.  Not everyone wants a mortgage and cash buyers are rare . . . ;-)

Hey Andi . . .  thanks!  We don't like NO for an answer!!

Hi Anna B -- THANKS for the feature, and I love the lovely bunch on F'Tude!!

Hey Renee . . . yes, listening is important, it helps to craft a good offer.  Good point.

 

February 11, 2010 12:27 AM
Rainmaker
710,772
Will Nesbitt
Nesbitt Realty is a family-run brokerage.
Nesbitt Realty at Condo Alexandria

I draft when I can and craft when I must.

February 11, 2010 04:22 AM
Rainmaker
281,804
Carra Riley
CRB, CRS, GRI
Author, Speaker, Consultant, Carra Riley Inc.

Carla....Crafting is a perfect word for what successful Realtors really do.  You make excellent points which are very clear and understandable.

Cosmic Cow

February 11, 2010 10:12 AM
Rainmaker
949,441
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
589,313
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
437,217
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
481,026
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
1,248,794
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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Rainmaker
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Carla Muss-Jacobs, Principal Broker/Owner

Buyer Focused ~ Buyer Results
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