Obtaining and Presenting Offers

Property Sales

Purpose

This procedure applies to all offers for property sales.

Inviting and presenting offers is a key activity in the company process. Working with offers is like building a bridge between the Potential Buyer and the Seller. Sales Consultants can succeed with a sale if they work with sensitivity, respect, honesty and understanding.

Procedure

Tips for inviting offers

Lead the Potential Buyer. Do not pressure or force them.
Most buyers are inexperienced, so they appreciate being led (but not pushed).
Be aware of buying signals. For example, questions about:
The transaction, such as the length of settlement required.
What comes with the property.
Use leading questions to encourage an offer, such as ‘If you bought the property would you need

Offers in writing

Put offers in writing on a Contract of Sale.
If it is an Auction Property, ensure Buyer seeks Legal Advice
As they negotiate the price, both parties initial the changes on the contract.

Presenting offers

Always present offers in person, never by telephone.
If possible, have all decision makers present when you present the offer.
Do not withhold information that the Seller may not like. Present the offer in a straightforward factual manner.
Listen carefully to the Seller’s response.
Advise the Seller about negotiating:
Benefits and problems of negotiating
Potential for negotiating in this particular case.

Negotiating

Make sure you understand ‘where each party is coming from’-their needs, strengths and limitations.
Do not give an opinion of one party in the presence of the other.
Remember that you are building a bridge, not running a competition.
Give impressions of negotiation potential
Do not carry out negotiations after 10 pm.
In your dealings with the parties, aim to end up with two lifelong clients.

When a property is under offer, marketing & inspections continue, until a binding Contract is

available.

What constitutes an offer

A minimum of $1000 deposit has been paid & receipted to the trust account.
The purchaser has signed paperwork. Contracts, if Section 32’s are available

All offers taken under the above conditions must be presented, where possible, by the close of

business on the same day. Once a property, meeting the above criteria, is ‘acceptable offer’ it is then

up to all agents to contact interested buyers and give them all the opportunity to make an offer to

purchase as well. These properties that are under offer continue to be marketed and inspected

until sold. This is in the best interests of the vendor. Final offers will close at 5pm the next business day if Auction property and next day if Private Sale.

Before writing up an offer, you should consult with the managing agent. The managing agent can

update you on the ‘readiness of the Vendor’ to accept any such offers. There is a requirement by

all team members to acknowledge that a sales campaign can be greatly affected by taking offers

‘too early’ in the program; (especially an Auction Campaign). As previously stated, COMMON

SENSE MUST PREVAIL- Communicate with the managing agent whenever possible.

If there are two offers, both buyers must be told that

they are competing with another buyer.
they may not get a right of reply/counter offer from the Vendor
that if we call them and tell them they have missed out for as little as $50 that they accept
that they have given their best offer! Ultimately, they must submit their biggest/best offer!

An under offer form is available for purchasers to sign to acknowledge that there are other

offers on the property.

All written offers MUST BE PRESENTED IN PERSON to the Vendor where possible. Vendors

who are interstate, overseas or in country Victoria will need to have access to a fax machine for

signing.

In all situations negotiations should be sped up to minimize delays and controversy. Your

manager is available to assist you! Common sense also should prevail in any submission of

offers. The managing agent will have a strong influence in any negotiations. They know the

Vendor and their wants and needs and can tailor the presentation of such an offer to maximize

the successful completion of the negotiations.