In commercial real estate sales and leasing today, the ultimate goal is to attract an offer effectively and accurately between the parties. The offer is the first part of the negotiation process and on that basis should be accurate in every respect. In this way you are initiating the momentum to the negotiation process. You are defining on paper the factors that are critical to the deal and the property in question.
It directly follows that an offer in any sale or leasing situation should be in writing. This is certainly the case with any buyer or tenant interested in one of your listings. If they are genuine in intent they will move to a written offer outlining the terms and conditions of the deal. Without a written offer you have nothing to work with and to help the client move ahead through the negotiation. It should also be said that a written offer should be supported by reasonable monetary consideration as deposit.
Here are some tips to help you with the establishment of an offer to purchase or rent any property today:
- Through the initial listing process you will have identified hurdles and problems that could derail any negotiation. Those issues should be dealt with before the property is taken to market. In that way you can remove them from the negotiation process. Encourage the client to deal with property problems before you find any tenant or buyer for the listing.
- In putting a letter of offer together, the identities of the parties should be clarified and valid. Make sure that you are working with legal identities that are intended to be the parties on the final contract or the lease.
- Many property transactions will be complex and special conditions or obligations on the parties will therefore need to be imposed through the letter of offer. Make sure that you have the terms of any special conditions clearly outlined in the offer documentation. That will then help the client’s solicitor prepare the correct final documentation.
- When you have an offer in writing, you can move between the parties in any counter offer situation. You can accurately document the variations and intentions of the parties as they move towards final documentation.
- Keep up the momentum of the deal through accurate and timely communication as well as face to face negotiation. As a general rule, avoid presenting an offer or negotiating or any variation across the telephone. Meet with the parties in all cases and where ever possible.
The offer process is the precursor to final documentation. Many top agents use the services of skilled property solicitors to achieve the accurate final contract or lease. In that way they know they are achieving the best document for the circumstances, the client, and the property. That also helps them with the momentum of the deal and the removal of any complex factors of negotiation.