Before you draft the offer document, make sure your buyers know the basic components of an offer, such as the purchase price, earnest money deposit, closing date, contingencies, and seller concessions. Explain how these factors affect the strength of the offer and the likelihood of acceptance or rejection by the seller. Use comparable sales data and market conditions to help your buyers determine a reasonable and competitive offer price, and advise them on how much earnest money to put down to show their commitment.
Once you have prepared the offer document, review it with your buyers in detail, and answer any questions they may have. Highlight the important sections, such as the legal description of the property, the financing terms, the inspection and appraisal contingencies, and the deadlines for each step. Make sure your buyers understand the implications of each clause, and how they can protect their interests or back out of the deal if necessary. Have your buyers sign and initial the offer document electronically or in person, and explain how you will submit it to the listing agent.
After you submit the offer, prepare your buyers for the possible counteroffer scenarios. Explain that the seller may accept, reject, or counter the offer, and that you will negotiate on their behalf to reach a mutually agreeable outcome. Discuss the potential areas of negotiation, such as the purchase price, closing costs, repairs, closing date, and contingencies. Explain how you will communicate with the listing agent and your buyers throughout the process, and how you will handle multiple offers or bidding wars if they arise.
If the seller counters the offer, present the counteroffer document to your buyers as soon as possible, and explain the changes or requests made by the seller. Help your buyers evaluate the counteroffer, and advise them on whether to accept, reject, or counter back. Consider the pros and cons of each option, and the risks and benefits involved. For example, if the seller asks for a higher price, you may suggest that your buyers counter with a lower price but a shorter inspection period or a larger earnest money deposit. If the seller asks for more time to move out, you may suggest that your buyers agree but ask for a rent-back agreement or a lower price.
Once you and the listing agent have reached a verbal agreement on the terms of the offer and counteroffer, you will need to finalize it in writing. Review the final offer document with your buyers, and make sure it reflects the agreed-upon terms and conditions. Have your buyers sign and initial the final offer document electronically or in person, and explain how you will deliver it to the listing agent and secure the seller's signature. Congratulate your buyers on having a ratified contract, and explain the next steps in the home buying process, such as scheduling the home inspection, applying for the mortgage, and preparing for the closing.
Besides all of the key items listed above, there is something basic... the language of the buyer. In order to understand and trust the transaction, find a way to help your borrower in the language that they feel more comfortable with. Let´s remember that the levels of bilingualism vary a lot within the same household. one way is to make sure that the team that will be in contact with the borrower is bilingual. Rely on lenders with bilingual loan officers and staff to explain the process and do whatever is needed to make sure the buyer has a full understanding of what is going on.