FROM OFFER TO CLOSING CHAPTER 11

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FROM OFFER TO CLOSINGCHAPTER 11
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In the last chapter we learned how to fill out
the eight page deposit receipt.
When the deposit receipt is signed by the buyers,
we call this an offer to purchase.
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OFFER TO PURCHASE 1. Obtaining the listing
(selling the owner on the listing). 2. Finding a
buyer who wants the property (selling the buyer
to make an offer). 3. Obtaining an acceptance
from the seller (selling the seller on an
acceptance).
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To earn a commission you must complete all three.
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• SUBMIT THE OFFER
• The appointment.
• Estimate the sellers proceeds.
• Estimate the buyers costs.

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THE APPOINTMENT It is the listing agents
responsibility to arrange the appointment to make
the offer.
Either agent can present the offer. It is
strongly suggested the selling agent make the
presentation. Sometimes the listing agent will
want to make the offer, this is not suggested.
DO NOT GIVE THE LISTING AGENT ANY DETAILS OF THE
OFFER.
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Never present the offer over the phone. Owner
cant accept an offer over the phone.
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CMACOMPARATIVE MARKET ANALYSIS When the listing
was taken the seller should have been given at
least three comparative market analysis.
If the listing is around six months old or older
you might want to present a CMA.
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PRESENTING THE OFFER 1. Multiple
Offers. 2. Setting the Mood. 3. Stages of the
Presentation. 4. History of the Sale. 5. About
the Buyers.
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MULTIPLE OFFERS
In a good market, many times a home will have
multiple offers.
It is the listing agents job to present these
offers in an impartial manner.
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SETTING THE MOOD
To set the mood, mention some features that
played a part in the sale and that you know the
owner takes pride in.
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STAGES OF THE PRESENTATION
One type of presentation is a three stage plan
1. History of the property sales effort and any
problems with the property.
2. Information about the buyers. Make the buyers
appear to be people whom the sellers would like.
The buyer should not be portrayed as trying to
take advantage of the seller.
3. The offer.
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HISTORY OF THE SALE
The length of period on the market (in days).
Previous listing or sale efforts.
Advertising.
The role of the MLS.
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The role of the MLS. Internet postings.
Open houses.
Showings.
Responses to showings.
Any other offer(s).
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ABOUT THE BUYER
Paint a verbal picture of the buyers that will
make the sellers feel they are likable people who
will appreciate the home.
Keep in mind that home sales are emotional, both
to the buyer and seller.
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THE OFFER
At the time of making the offer or included in
the offer, the following should be agreed upon.
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Some examples are

• ? Occupancy date.
• ? What stays or goes with the house.
• ? Seller will prepare a transfer disclosure
  statement.
• ? Name of escrow and if costs are to be split.
• ? Prorating of taxes.
• Keys to be turned over.

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JUSTIFY THE OFFER
When the offer is less than the listing price,
you must be able to justify the offer.
The seller should realize they are in competition
with other sellers.
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AGENT RECOMMENDATIONS
Sellers have three choices
1. Acceptance.
2. Rejection.
3. Counteroffer.
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ACCEPTANCE
It is unethical for a sellers agent to recommend
to the owners that an offer be accepted if the
agent does not feel that the offer is in the best
interest of owners.
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REJECTION
The two major seller objections are
Price
Terms
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THE COUNTEROFFER
If an agent can get the buyer to make a full
price, all cash offer, there is no need for a
counteroffer.
Usually the buyer will want to make an offer that
is not full price or does not meet the terms of
what the seller wants.
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The seller can make a counteroffer.
The seller should understand that the
counteroffer rejects the original offer and gives
the buyers an out. Once an offer is rejected, the
owners have lost their right to accept and form a
contract. The offer is dead.
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The buyer then can make a counteroffer to the
sellers counteroffer.
Counteroffers can continue until the seller will
accept one, or the seller or buyer stops or
rejects the offer.
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THE ACCEPTANCE
Acceptance of an offer must be unqualified.
An acceptance does not take place until the
person making the offer is notified of the
acceptance.
It is recommended that you deliver the acceptance
to the buyers immediately on receiving it.
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READY TO GO TO ESCROW
Once the offer has been accepted the transaction
is ready to go to escrow.