module 05 / offers and negotiations
Update Market Information
Price of Similar Properties Look at list and sales prices on similar properties in the same area. Price Trends Current percentages of list compared to sales price. Supply and Demand In a high-demand, low-supply market, your buyer’s offer may be competing with others. Absorption Rate Number of month’s supply of inventory. Average Time on Market Cumulative market time is critical.
•
•
•
•
•
If you are acting as a disclosed dual agent in a transaction and prepared a CMA for the seller, you should do the same for the buyer. Not doing a CMA for the buyer puts them at a disadvantage. Check your state laws in relation to dual agency.
Formulating an Offer
In putting together an offer, you want to weigh advantages and disadvantages. Discussing pros and cons helps you and your client articulate your position and rationale. You want to make sure you are aligned in the offer that you make. Use the following buyer-client’s negotiating position checklist as a guide to making these crucial assessments. Now that the market analysis is complete and your buyer is ready to move forward, the next step in the process begins. Once you have collected and evaluated information about market conditions, the property of interest, the buyer’s financial strength, and the seller’s situation, it is time to formulate an offer. Remind your client that the offer represents a legal contract and must be taken seriously. It does not, however, guarantee the purchase of the property. Assessing Your Client’s Advantages and Disadvantages
Create Your Game Plan
• Is the market with you or against you? • Are there competing offers? • Are the parties motivated?
• Does the listing agent have their own offer? • What is your relationship with the other agent?
PAGE 53
Made with FlippingBook - Share PDF online