Here’s how we educate our buyers to help them get under contract.
Have you ever had a buyer client fall in love with a home, but after you give them recommendations on how to write an offer, they look at you like you have three heads? Then they ignore your advice when submitting an offer, lose out on the home, and end up distrusting you?
One way to prevent this is to educate your clients before they enter into a high-pressure multiple-offer situation. My team does this by using a document called “12 Decisions to Make When Crafting the Offer.”
In this form, we go over factors like purchase price, home inspection contingencies, financial loan commitment, appraisal contingency, earnest money deposit, post-closing occupancy, seller-paid closing costs, down payment, types of financing, home sale contingencies, and closing dates. Then, we break down each factor into three categories: stronger offer, moderate offer, and weaker offer.
“You do this kind of thing every day, but this might be your client’s first home purchase.”
For example, when it comes to purchase price, a stronger offer means making an offer above asking price or using an escalation clause, while a moderate offer means an offer right at market value, and a weaker offer means an offer below market value. You do this kind of thing every day, but this might be your client’s first home purchase, or the first one they’ve had in many years. This information may get a little jumbled to them, but a document like this clarifies things and helps them make good decisions.
This form can also help with home inspection contingencies. Our market is so competitive that a lot of buyers are dropping home inspection contingencies. Your client may not want to do that, but you can educate them on the pros and cons of a home inspection in language that protects them and makes their offer more attractive.
For example, a stronger offer means buying the home as is and having no inspection, or getting permission to do a pre-inspection before your offer is accepted. A moderate offer means putting a cap on how much your buyer is willing to negotiate for any particular item. A weaker offer means doing the traditional inspection.
If you’d like a copy of this form or have questions about educating your clients before making an offer, feel free to call or email me. I’d be happy to help you.
