How to Present a Real Estate Contract

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Do you know how to present a real estate contract? While it seems like a no-brainer, for a new agent it can be terrifying, and even experienced agents can benefit from learning a few techniques on how to present a real estate contract.

There are varying opinions on how to present a real estate contract, and many times you may be faced with opposition from the listing agent if you are presenting an offer on a home. However, in almost every case, you should NEVER just fax over a contract to the listing agent unless you have tried all other options and failed or it is a foreclosure property, since that is typically the only way a bank owned property will consider an offer. It is your job to represent your client – and if you merely fax an offer over without any explanation or argument for the offer, you are not fully representing your clients’ best interests.

Obviously, the first thing to do is to notify the other agent that you have an offer to present. Call their cell phone, their office, and send them an email letting them know you have left them a message explaining you have an offer for them until you finally reach them. It is most important to do this in a hot market, but it is a good practice in any situation, since there are some less than ethical agents out there who may pretend they never received your offer or had another offer “first”.

Whatever you do, do not discuss the offer with the other agent over the phone: Almost every agent will ask you to tell them the “basics” of the offer over the phone, such as price or contingencies. Unfortunately, the minute you tell them these things they will start to form their own opinions about the offer and may automatically reject it in their mind. Instead, tell the agent you do not have it front of you right now and set up an appointment to present it.

If all goes well and you have an appointment set up, you may be nervous about how to present a real estate contract. If it is your first time, be sure you talk to your office manager about it first, as he or she may be able to provide some additional information and know what is customary in your market area.

Be sure to show up for the appointment on time and in a professional organized manner. Have all of the necessary paperwork with you, as well as a list of comparable properties with photos to help support your client’s choice in price if it is not a full price offer. It is quite possible the listing agent will not have comps of his or her own, so having this information can give you the advantage at the appointment.

When you begin, you can choose to tell the seller a little bit about the buyer or you go straight into the offer. There are pros and cons to presenting a real estate contract this way, as you may need to worry about making the seller think the buyer wants the house too much and therefore should pay more. Some sellers could not care less about who is buying the house or what their sob story is. If your client wishes for you to tell them certain information about them, be sure it will not interfere with the Fair Housing Act Laws, and that it will be appropriate for the situation. Discussing it prior to the appointment with your office manager may not be a bad idea either.

When you present the real estate contract, it is usually best to present the strongest part of the offer first. If it a full priced offer, by all means present that first. But if there are no contingencies, quick closing, or high down payment, those could be stronger points to talk about first. Be sure you explain what these mean and how it will benefit the seller. Be sure to bring with you and use any supporting information that may be helpful.

Once the offer is presented, and the seller has had a chance to review and understand the contract, you will want to ask them if they have any questions and answer those questions. The seller’s agent may be abrupt and curt with you at this point and show you to the door. You may ask them if they would like a few minutes to discuss this offer privately and you will return in a half hour or recommend sleep on it if they flat out reject the offer.

After you present the offer, you should also call your clients and let them know that it has been presented. Hopefully you will have an answer for them, but if not at least you are keeping them informed of the progress.

Do you have any tips on how to present a real estate contract? Feel free to leave your ideas and suggestions on how to present a real estate offer in the comments.