Due care and attention need to be taken during the groundwork and proposition of an offer as this can never be an unplanned or haphazard business. The standard practices mentioned below presume an association wherein the listing brokerage and the marketing persons are assisting the seller in a seller agency affiliation and the selling brokerage and sales persons are performing for the buyer in a buyer agency bond. In addition, the neighborhood and/ or regional guidelines related to presenting an offer and particular situations encompassing a precise real estate deal will determine the issues to be talked about with the seller/ property owner and the exact time for it.
After the buyer has undersigned an offer and is all set to introduce it as per the usual procedures followed in the neighborhood and/ or region, the listing sales person has need of some specific data to help the seller in taking an expert decision on the matter. On the other hand, the marketing people working on behalf of the buyer may perhaps too consider preferred points discussed below while getting ready to carry out their responsibilities during the course of the presentation.
It is important to scrutinize all offers with regards to the stipulations under which the seller or owner had decided to sell the real estate asset. This is despite the fact that in many cases the situations may have altered since the property was initially listed for sale.
The next step is to sum up the available data like how regularly the listed property was advertised, responses received from the prospective buyers, number of times the property was showed to potential buyers, earlier offers made for the listed property and details regarding the open houses organized at the property. In this case, pertinent remarks from the prospective buyers may prove to be useful.
You should also organize or revise a market study of the locality demonstrating the number sales that have taken place recently as well as the number of real estate assets that are yet to be sold.
If the selling brokerage is able to provide relevant information regarding the details of the buyer's personal history to the seller/ owner, it will help the seller in coming to the right conclusion regarding the sale of the listed property.
Making preparations of the financial data beforehand may possibly help the seller on the topic of estimated selling charges and the exclusive profits in the event of the buyer's offer being admitted or accepted by the property owner.
An offer not only includes the price that the buyer is willing to pay for acquiring the listed property, but also a number of other stipulations and each of these may influence the seller's decision on accepting the offer. In fact, the offer made by the buyer should also be evaluated taking the seller's situations into consideration scrutinizing a wide assortment of queries that are likely to come up during the presentation process. A number of these important questions are discussed below.
Find out if the deposit or down payment made by the buyer is adequate. If the deposit had been made through a bank cheque, it is essential to ascertain the reliability of the cheque.
Remember, a larger down payment or deposit by the buyer ensures a greater extent of security for the seller. A sizeable or large deposit by the buyer increases the standing and reliability of his or her offer to acquire the property. In real estate business, a big deposit made by the buyer is considered to be a very positive aspect of any offer presentation. A poor or lesser deposit or down payment by the buyers often reflects the absence of assurance on their part.
Lack of adjustment of the seller's desire with the completion date of the buyer may turn out to be a major issue of argument. The issue of provisional financing may be in the cards is the seller has to complete his or her new purchase before closing the property presently owned by them and is in discussion for sale.
In an alternate scenario, the buyer may ask the seller to check out of the property even before another property or home is prepared for his or her residence. In such situation, it will give rise to issues or queries related to points such as provisional housing, expenditures as well as the stashing the furniture and fixtures.
Groundwork on accumulating information and assessing the expenditures related to issues mentioned above will help to make the presentation or introduction of the property to the buyer more useful.
Generally the conditions included in the buyers' offer do not precisely go with the seller's propositions as regards to the chattels and fixtures or outfits that have been specified on the property's catalog. Disagreements like these may lessen the price originally offered by the buyer for acquiring the property.
It is important to note here that the items or fixtures that have been left out of the listing could possess sentimental worth to seller/ owner and hence they are not for sale.
In the event of a seller taking back a mortgage, one would look forward to a seller take back (STB) presentation with a view to make it possible for the seller to avail the entire facts while taking a decision on accepting the buyer's offer for the listed property.
There may be occasions when the seller considering a seller take back (STB) presentation possibly will have need of money for ensuing deal. Hence, it is essential to consider the potential sale of a mortgage, expenditures and processes related to it as well as the final profit to the seller by disposing off the property.
There are occasions when it is obligatory for a seller to release a current mortgage as a component of the deal. In such situations, the marketing agent needs to be familiar with the expenditures associated with the mortgage release and counsel his or her client in view of that. The sales person may possibly have an inclination to create substitute circumstances to explain the seller what he or she may profit from other supposed which may comprise various types of funding for operating expenses.
It has been seen that on many occasions the seller simply consider the price offered by the buyers and respond sensitively without even scrutinizing the additional conditions and realizing how they influence the price in general. Although it is true that the price offered by the buyer is of enough significance, the sellers should also consider other aspects like the closing date, the conditions of funding and articles included or left out as these issues can expressly influence the end result for the sellers while considering acceptance an offer.
Each offer made by a buyer is bound by a time limit for being approved by the seller and the seller may not accept the offer once it has run out of the deadline. Hence, the buyer who is makes such an offer to the seller is privileged to suppose that the sales person working for him or her will present the offer as early as possible. It is important to mention here that an offer may perhaps in addition liable to be subjected to cancellation before its approval. However, there are some differences on this issue as different provinces have separate clauses printed in the offers itself. Hence, it is in the sales person's personal benefit that he or she presents the offer at the earliest time possible for the approval of the seller and also appropriately convey the acceptance of the offer to the buyer if the seller approves it.
In many cases, the sales person who has listed the property possibly will have his or her agent or a different sales person in the brokerage's office that will make the appointment on their behalf. As talking about the particulars of an offer over the telephone is somewhat uncomfortable and hence the sales person is normally not put in such a situation. In fact, majority of the real estate board authorities have specific regulations that need to be followed while presenting offers engaging the services of listing and selling brokerages.
It is logical that a buyer should present an offer in black and white to the seller promptly after the marketing agent has organized all relevant data. The offer should be presented at such a time that it provides adequate time to cope with it in a comfortable ambiance and when all people concerned with the procedure of taking a decision on the offer are able to be in attendance. All said and done, it must be borne in mind that time is the most important aspect while presenting any offer in a real estate transaction.
When the buyer has presented an offer to the seller/ property owner, it becomes the responsibility of the marketing agent to offer clarifications of the basic conditions mentioned in it. In the event of the sales person failing to provide the clarifications may possibly deemed to be slackness on his or her part and deprive him or her of commission and a lawsuit together.
It is pertinent to mention here that both the seller and the buyer ought to be guarded against agreeing to any stipulations in an offer which they cannot carry out or conditions that they are not in command of. Hence, an attorney is the best person who can counsel the seller if he or she is able to accept an offer without any restraint and also in a situation to perform the conditions laid down in the offer made by the buyer.
It is important that all such official advice ought to be non-partisan representation. There are various aspects relating to such legal counsel and a few of them are mentioned below.
It has been seen that on several instances immature sales persons find it difficult to handle the seller or buyer's wish to meet an attorney. Normally, the worries are more in the mind than they actually exist. In order to overcome such concerns, first of all sales persons need to accept the wisdom of looking for expert legal advice at the very beginning of the real estate deal. Following this, the sales person should request the client to be present during the meeting with the solicitor in case the attorney may ask any question concerning the deal. The sales person may also offer to drive the client to the lawyer's office or dispatch a copy of the contract along with a follow-up action taken over the telephone through fax. Another vital thing to remember is that the sales person should never try to debate the aspects of law with the attorney during their meeting or discussion over the telephone. It must be always borne in mind that the seller is a client of the attorney who is responsible to counsel the client whether the offer made by the buyer appropriately specifies his or her objectives. Nevertheless, when the discussion turns to areas of relating to the sales persons' proficiency, such as the bargaining the price of the property and/ or funding the expenses, they should feel free to offer their expert advice both to the seller as well as the solicitor.
In brief, any sales agent who is convinced about his or her understanding of the subject, aptitude to handle things efficiently and reliability and is also ready for such appointments or discussions over the telephone will always appreciate an attorney inspecting the offer made by a buyer. Under no circumstance will such sales persons feel concerned or uncomfortable with the layer's role in the real estate transaction. At the same time, it is important for a sales person to make his or her client as well as the attorney conscious of the realistic constrains and the time factor in accepting an offer.
If a seller finds that the conditions mentioned in an offer made by a buyer are not acceptable to him or her, they have two options - either disapprove the offer or present a counter offer to the buyer. In fact, when the seller makes a counter offer to the buyer, it interchanges their roles as it is the seller who makes an offer to the buyer now. A counter offer is considered to be a fresh offer as it specifies the precise terms on which the owner is willing to sell his or her property. Any seller desiring to make a counter offer possibly will also choose a new fixed time frame for the acceptance of the counter offer by the buyer. The procedures as well as varieties adopted in making counter offers usually differ according to the regulations set up by the different regional authorities.
While accepting an offer presented by a buyer, the seller/ sellers need to sign an adequate number of copies in conformity with the regional regulatory law. In fact, the number of copies should be sufficient so that every one concerned with the real estate deal, including the listing brokerage and the selling brokerage, receives one signed copy of the offer acceptance.
Although there is no regulation specifying that the brokerages or sales persons should make copies, either signed or without signature, of the acceptance of an offer available to the attorneys of the seller and the buyer, in real practice they are usually provided with one copy each. Sometimes even the sellers and buyer may perhaps delay in selecting their respective attorneys and dispatch copies of the transaction deed to them. It needs to be mentioned here that such lingering on the part of the sellers and buyers in forwarding the copies of the real estate deal contract to their respective lawyers may eventually prove to be catastrophic, especially for the buyer's attorney who has to search for a deed within a restricted time frame. Hence, the sales persons should highlight the importance of dispatching the copies of the transaction agreement to the attorneys at the earliest possible time to their clients. If the seller or buyer is yet to select a lawyer, it is the responsibility of the sales person to convince his or her client on the emergency to do so promptly.
There may be times when the seller and the buyer will request their respective marketing agents to recommend a reliable attorney. Since suggesting a lawyer to the client signifies a probable clash of interests, the sales persons should try and stay away from meeting such requests. When confronted with such a situation, most experienced real estate practitioners play it safe by recommending a number of names of lawyers and leaving it to their clients to make the ultimate choice in this regard.
