Before writing an offer for buyers, what should the salesperson keep in mind?

1. Talk to a salesperson as soon as possible.
   Many buyers make the mistake of holding off making an offer once they’ve discovered a home they like. We get it, it’s a big decision and like a lot of decisions they often get put off. But then other enquiries come in and if it’s a good property its already gone ‘under offer’, so let the salesperson know you’re interested, get the paperwork, do some research, and if another offer does come in at least you can act promptly. Even better be the buyer who leads the field, gets in first and has the advantage over other buyers.
2. Avoid talking in terms of verbal, informal proposals.
   In New Zealand offers need to be in writing. Verbal offers have no weight. Demonstrate your commitment as a serious buyer and meet with the agent to prepare everything in writing. Not only will the paperwork be better prepared, without the mistakes that can occur when sent back and forth by email, but as a buyer you will be able to ask more crucial questions that you may need an answer to and get details about the property and chattels that you want to know.
3. Before looking for a home, get finance pre-approval.
   Conditional approval will give you a better sense of how much you can borrow and how much you can afford. Speak with your bank or mortgage broker to understand your options and get pre-approval, but keep in mind, even with pre-approval, you still need to be approved for the specific property you are buying. Being pre-approved though does put you in a stronger position when making an offer as it gives some assurance to the seller that you will be able to pay for the home.
4. Get legal advice.
   Buying property is expensive, and it can cost even more if something goes wrong, so it’s important to get legal advice before you sign anything. Engage with a lawyer early in your property search as they will be able to provide valuable advice around your purchase. Look for recommendations for lawyers online or through referrals and get quotes for their services. Make sure the quotations are written and include all fees and charges.
5. Ensure you have clauses in your offer to protect you.
   As a minimum you should check a title search, a LIM (Land Information Memorandum) and get a property inspection and/or engineer’s report before, or as a condition of, an offer on a property. Completing due diligence on a property can take time and can cost money, but it’s an investment that could save you a lot of time, money and headaches later.
6. Decide on a price for your offer
   Sometimes sellers will list their properties without price indications. When this is the case, you should do your own research into how much similar houses in the neighbourhood have sold for to get an idea of what price you would be comfortable paying. Undertake home viewings, chat with local real estate agents, and look at property websites for sales data. When a property does have a price, you have a better idea about what the seller is expecting and so will not have to waste your time on properties you may not be able to afford.
7. Remember it is not always all about the price.
   Although it is usually the offer with the highest price that is accepted there are other considerations that a seller may take into account. These include how many conditions your offer may have, how convenient your proposed settlement date is to the seller and even how the seller may perceive your motivations as a buyer.
8. Ask for a copy of our publication “Preparing to Buy”. Packed full of tips, information and advice to help with your real estate buying journey.

Many buyers (retailers, restaurants, institutions, etc.) are often willing to purchase directly from producers - if producers are able to deliver a product preferred by their customers.  Below are tips on successfully working with buyers.

1.  Familiarize yourself with the market. Talk with other producers who are already operating in your general market. Get a sense of the products demanded by that market, potential level of interest and typical prices offered. Know your processing and transportation costs. 

2.  Select an appropriate market for your capabilities. Try first to establish yourself with a buyer and a specific market that you are 100 percent certain you can supply and satisfy. When your product is known and you are assured you can meet the quality and volume needs, you can approach other buyers and larger volume accounts.

3.   Prepare written materials. If targeting restaurants or stores, keep in mind that most buyers like to see two sets of materials. 

• First, they like to see in writing what products you have to offer and at what prices. This sheet should also summarize the claims and characteristics of your product in an easy-to-read and attractive manner. These include the production characteristics that distinguish your products from others. You may also want to provide a website, where they can obtain daily quotes if the product is sensitive to market fluctuations.
• The second type of written materials that most buyers like to have is a brochure that will help them sell your product to their customers. This type of point-of-sale material should positively outline the characteristics of your product for customers who may need some explanation of the advantage of your product over others.

4.   Initiate contact with a telephone call. Most buyers would like to receive a call in which you clearly state your intentions. Rehearse. By the time the buyer picks up your call, he or she may already have another one waiting.  Professional salespeople often have a 50-, 100- and 200-word explanation of their products ready to be delivered. Never just drop in on a buyer. Setting up an appointment will ensure you that you have the buyer’s time and attention.

5.   Clarify the details of the business relationships. If a buyer expresses interest in buying from you, be sure to clarify the terms of the sale. Review the exact item(s), volumes, price, delivery date and conditions and any other requirements.

6.   Deliver what you promise. Promise only what you are sure you can deliver and then follow through. If at any time you cannot meet the terms of your agreement with the buyer, notify him or her as early as possible and be prepared to help the buyer meet commitments.

7.   Be persistent without being a pest. It will be pure luck if you nail a big sale on your first try. Learn from each attempt. Never grow angry or stop asking questions about what you can do to help meet buyer needs. You are in business to meet your buyer’s needs, not to push the product you need to sell. Don’t just drop a product on the buyer’s desk – deliver a solution for their needs.

Basic Steps to Set Yourself Up for a Sale

Below are some ways to help you succeed when you call potential buyers.

• Give your name: "This is Lynn Doe from Anytown."  Ask: "Could I please speak to your buyer?"
• Let them know you are calling with the intent to provide a great product.
• Ask when might be a good time for you to come and talk about your product. (Some buyers may ask you to send written material to review before setting up an appointment.)
• Ask if you can send information ahead of time. Or, in case of a negative response regarding a meeting, ask: "Can I send product brochures and some information about our quality?"
• Ask if the buyer wants you to bring samples.
• Find out if there are new products you can show them.
• Whatever the outcome, say, "Thank you!".
  Thank them if they say, "Yes."  Thank them if they say, "No."

Once you have your foot in the door, keep it open for the next time.

* Reprinted with permission, Agricultural Marketing Resource Center, Iowa State University.

Mary Holz-Clause, former co-director, Ag Marketing Resource Center, former associate vice president for ISU Extension and Outreach

What is the most effective way to present an offer quizlet?

Which statement is true regarding the acceptance of an offer by sellers?

What is another name for an offer to purchase?

What is the period of time called when all parties are held accountable for the terms of the agreement?