As a real estate professional you qualified the buyer, helped them secure financing, and gained their commitment during an information-packed buyer consultation session. You made the process fun for the buyer and you saved the buyer time by previewing homes in advance. After showing the buyer several homes they have discovered their dream property.

It's now time to write the offer! But before you reach for your lucky pen, there are some critical preparation steps that must occur before the actual offer is written. Why? This is an opportunity to train the buyer how to write a great offer that will be accepted!

Let's look at five key ways superstars prepare their buyers to write a great offer.

1. Explain the process

   The worst thing that an agent can do to a buyer is to write an offer, without explaining the negotiation process. Yet, most agents are guilty of this every time they write an offer. In their rush to make a deal they often forget that this isn't something that most buyers do every day. This is a costly mistake that can sour new client relationships, and turn hot buyers into cold buyers overnight.

   As real estate professionals we know that there is a definite process to buying a home, a detailed list of procedures that occurs in almost every transaction. Top producers have learned to explain the sales process in a way that simplifies the transaction for buyers. By taking this extra step buyer will feel more relaxed, and at ease throughout the process.

   Here is a list of ideas you may want to include while explaining the process:

   • The offer forms - review
   • Seller counteroffers - how, and why
   • Buyer counteroffers - how and why
   • Disclosure statements
   • Financing - qualification buyer and home
   • Inspections - available and recommended
   • Closing date and possession
   • Escrow and the closing process
   • Negotiation - what to expect

   Most buyers know they should be asking questions, they just don't know what they don't know. Your job is to let them know what they don't know.

2. Request disclosures

   Many agents wait until after they have written an offer to request disclosure statements. This can be a huge mistake, and one that could cost your buyers thousands of dollars in lost negotiation opportunities. For instance what if the buyer discovers something on the disclosure statement that would have affected how they wrote their offer? Of course, you could attempt to re-negotiate the sale after fact, but this can be incredibly difficult when the seller has already emotionally "cemented" a price in their mind.

   Instead superstars always request and review all disclosures in advance of writing the offer. Also why not present the signed disclosures with the written offer to show that your buyers have read and approved of the disclosures in advance. This may, in fact, provide your buyer with a stronger offer especially in a multiple offer situation.

   Requests you may consider:

   • Disclosure statements
   • Lead paint reports
   • Survey
   • Easement lists and maps
   • C, C, & R's
   • Aerial maps
   • Flood plain maps
   • Siding disclosures
   • Mold disclosures

3. Talk about buyers remorse

   We've all had buyer's remorse - that feeling of regret, or unhappiness that often follows any large purchase. This acute feeling of anxiety can lead to all kinds of trouble in a real estate transaction. Remember this - The larger the purchase, the larger the buyer remorse effect.

   Try using this script with buyers:

   Agent: I want to explain something to you. This may sound a little funny but it happens to every buyer I work with.

   When you go home tonight, or it may take a few days to set it in, you may begin to have some doubts about the house. We call it buyer remorse - you've probably had this happen when you bought a car, or a stereo, right? Well the larger the purchase - the larger the effect. So just be prepared for it, if you need someone to talk to just let me know.

4. Don't write offers until the talking is done

   Many agents like to rush the offer-writing process. Instead of sitting with pen in hand - ready to fill in the blanks why not set the offer aside, and spend some time thinking about the offer with the buyer. Why not discuss different alternatives, approaches, and strategy? For instance how about discussing these issues:

   • The Seller's motivations - Prepare a list of questions to asking the listing agent about the seller and the home. For instance - What is the seller's timeline? Or Is there anything not on the disclosure statement that my buyer should know about?

   • Market stats – Complete a CMA for your buyers on the home. Why? Because the seller's agent will have done so for the seller. By educating the buyer you will arm your buyer with the tools to write their best possible offer. Unless you are acting as dual agent.

   • Home condition/disclosures - Discuss the home's condition. Remember to point out that the seller may or may not have already compensated for the home's condition in the price.

   • The Strategy - Encourage the buyer to consider an overall offer strategy. Part of creating a strategy may mean that they determine a price they would love to pay, and price they would be willing to pay. By establishing these two different prices early you can build on overall offer strategy consistent with the buyer's goals.

   • Possible future concessions - Ask "What if?" questions to flesh out possible scenarios - What if the seller won't accept your price but will throw in the home theater system? Get the buyers thinking about the give and take process of a real negotiation.

5. Know when to say no!

   Do you have to write all offers? What if you get a buyer that want to write a $1 offer on $200,000 home do you have to write the offer? In most states you must present all offers, you don't necessarily have to write all offers, especially unreasonable ones. Superstars often ask themselves these questions when determining whether to write an offer:

   • Will this offer affect my relationship with the other agent?

   • Will this offer affect my ability to negotiate effectively on this home for another buyer?

   • Is my reputation worth this offer?

   If you come back with negative answers, you may want to refuse to write the offer. Here is how:

   Listen, I understand you want to get the best deal possible.. But let me ask you a question "If you were the seller, would you accept the offer you're asking me to write?" Unfortunately I just don't feel comfortable investing my time into a negotiation that I don't think can work."

By taking the time to prepare your buyers for your next negotiation you may just put your clients into a better position to receive an acceptance, and earn yourself a new escrow!

Published: November 2, 2004

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Jim Remley is a speaker, author, and consultant. He is also an active real estate broker in Southern Oregon where he owns a network of six offices. Jim won the Rookie Instructor of the Year award in 2001 from Realty-U, the largest network of real estate educators in the nation. He was the winner of the 2002 Pacesetter Award, and nominated for the Real Estate Instructor of the Year Award during the first quarter of 2003. To learn more about Jim, please visit ProPerformer.com or e-mail him at .