Building a solid offer letter

1 Reply

Hello,

I wanted to know from experienced investors how do you develop a solid offer letter without the use of a real estate agent? Is there a particular program/software/template you use? This is a skill I would love to learn as I do not expect to use a realtor for each deal. 

@Dr. @Kristen Ray Your profile says that you're new to investing. That seems to me to be the time that you need outside expertise more than later in your career.

If a deal is on the market (on MLS), the commission paid to the agents is already agreed to in the listing contract, so buyer's agent or not, the seller will pay the same amount of commission. There's no discount for not having your own agent.

If you deal directly with the listing agent, you are up against someone who is bound by ethics and law to represent the best interests of the seller.  Further, they are most likely a trained negotiator.

If you're comfortable in that scenario, by all means, have at it.

If it's not on the market, you don't really know who you're up against.  That's a crap shoot, but having a sharp negotiator representing you could pay big dividends.

When it comes to offers, they will use mostly of the same components, but terms and conditions will vary by deal because no two deals are exactly alike - especially when it comes to terms and contingencies.  Contingencies are really critical too.

If you're not going to use a Realtor, at least use an attorney to draft and review your offers.  Use outside expertise while you're still learning and go solo later.

Charlie MacPherson, Real Estate Agent in MA (#9532146)
781-412-4151

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