This is a remarkably interesting question as I can either say that not very much will happen or a life changing experience will occur depending on the real estate agent you are dealing with and the level of experience and expertise they have.
Sadly, what can happen, to your disadvantage, is that the agent hangs up from you after you have made an offer over the phone, text or email and the next call they make is to the seller sprouting your price offer. No preparation, no list of reasons why the seller should either accept or reject your offer, but just a quick call hoping to put together a transaction.
This is what can happen when you put in an offer without a planned approach. But if you really do want an offer strongly considered by the seller, the process starts well before you actually let the agent know you want an offer submitted. And if you want to get a reasonable offer accepted, then there is definitely an art form to it and it’s certainly not as simple as the above example.
So, let us talk about what you should do when putting in an offer on a property you wish to purchase.
1.Visit the agent personally or by phone
Firstly, you need to ensure that you take the time to visit the agent personally where possible or make verbal contact where possible. Making an offer by text or email leaves out an important component – giving you the opportunity to build a relationship with the agent and also giving you the opportunity to explain to the agent your reasons for making an offer and how the agent should convey this offer to the seller.
- Here are 6 steps to take
This process is best explained by sharing with you a recent conversation I had with a friend who was buying through another agent and not Century 21 or Better Homes and Gardens Real Estate, my company brands.
They had been sending and receiving texts to and from an agent regarding a property they were wanting to purchase. The agent was negotiating with another buyer as well, so the situation was stressful for them. They called and asked for my advice, and I advised them to go through the following processes.
- Call the agent and let the agent know you will be in their area and would like to pop in for a quick visit.
- When with the agent, take the time to build your relationship and humanize yourself. Let the agent feel part of the process in helping you achieve a desirable result.
- Explain your position and that you can act quickly to purchase the property.
- State your offer and advise the agent that ‘you would prefer not to borrow more, but if needed to you would push yourselves further’. Of course, you need to offer less than your maximum at this point so that if you needed to increase your offer at a later stage you can – basically giving the agent a little wiggle room to negotiate on your behalf.
It is important to note that you also need to give the agent an opportunity to have more money available to them so that they can at least demonstrate to the seller that they can get that ‘little bit extra’ out of a buyer.
- Discuss with the agent all the reasons why the seller should consider your offer – finance approved, quick sale or if the seller needs more time to settle you can accommodate, you can sign a contract today etc. etc.
- Ask the agent to call the seller while you are with the agent and listen carefully, if possible, to what the agent is saying on your behalf. This way you can correct any miscommunication instantly and begin negotiating live whilst with the agent.
I am pleased to say that my friends did purchase the property at a reasonable price and although they did not get the opportunity to complete all of the tasks I laid out for them, they stated that building a relationship with the agent and making the process personal rather than via email or text, helped them immensely in getting everything done quickly and, with the agents help to the extent an agent can assist whilst at the same time acting for the seller.