We all need to settle and build roots one day. Either that or most of us working to earn our keep for years now, already wants an investment that would be worth all that hard work. And for many adults, getting a property of one’s own whether for commercial or personal reasons is a great and fulfilling way of rewarding ourselves, because real estate is a good investment when you consider the value that comes with a well-chosen property or people you do a real estate business with. You may also see Proposal Samples.
Elements of A Real Estate Proposal
If you know where to go, and have scouted properties using reliable resources, lease or purchase may work well for you, just like it has for many people who invested in real estate since it can offer some very attractive benefits that aren’t limited to the flexibility of terms. Knowing what you want or what your priorities are, is the key to making sure you get to own property that answers to your long-term needs. Here are a few elements usually found in real estate business proposals:
1. Detailed Description: Put together a paragraph describing the property, its location, amenities and emphasis of the advantages that come with owning or leasing it. Just make sure that you use proper language which will do your proposal justice and actual favor instead of leaving a bad taste in a potential client’s mouth because of misused words that could dampen a person’s interests such as “vacant”, “slightly-damaged”, or “must sell”.
2. Photos: Include attractive photos. These are a very important visual aid in pitching the property. In fact, photos are better at conveying a sense of the property than just your regular sales pitch in words. List down the basic repair and maintenance checks to conduct in order to increase your property’s value such as repainting the walls or getting the old aesthetics of the lawn back with a good landscape.
3. Property Brief: This section is short and summarizes the client and what the property offers. It should show that you fully understand what the client needs and how the property can meet their requirements, in addition, to provide an accurate description of the property as it currently stands.
4. Executive Summary: It’s important to include a page for what can be considered as your executive summary. This should be concise, having one to a two-page summary that incorporates and presents the property well along with its marketing. Make sure that it is written in a clear, understandable language. To break down your discussion or if you think it’s a tad too long, add some bullet points because this is probably the section that could make or break a great impression.
5. Research: Show the reader that you know what you’re talking about and that you did your legwork in knowing the core element of your investment such as why it’s logical, limitations, potential pitfalls, and risks and how the market currently stands to support it. Your reader might be convinced that the investment makes sense but they still have to know that you’re going to turn that plan into something tangible. You obviously need to provide an outline for the ways in which they can benefit from it.
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Steps to Write A Real Estate Proposal
Real estate transactions usually need a proposal in writing prior to execution of a contract by two parties. Bear in mind that a proposal isn’t a legally binding document and make sure both sides understand this. If you’re interested in leasing a commercial or private property and want to know what terms and conditions the landlord will and will not agree to before signing a lease agreement, write a proposal addressing the most important issues following these steps:
1. Put a title page: This includes basic information, like your company’s name and contact information, your company logo, your client’s name, and contact information, the date, and a title. It makes the proposal look neat, organized, and adds a professional flair.
2. Attach a cover letter: You wouldn’t want to walk up to a person you want to impress without introductions now, would you? The same thing goes for business documents such as proposals. Although a cover letter isn’t necessary, it serves as that introduction, giving your client a “preview” into your offer. You can’t just jump to the project specifics or terms without stating brief background information regarding who you are or who you represent. Make it friendly and encouraging, without being casual.
3. Set a deadline: Establish a deadline for a response from the date the proposal was submitted and state that non-compliance automatically renders the proposal no longer valid to emphasize urgency and your need. The other party may want to check options but that doesn’t mean they can drag it too long.
4. Consider state regulations: There are properties or buildings that are code-specific in most states and it’s usually the owner or landlord’s responsibility to secure all the necessary permits and city or state requirements to make sure the building has undergone inspections, passing all safety and other property-specific regulations.
5. Consult a professional: In situations where something needs a good understanding of business legalese, or in the case of real estate proposals, lease terminologies, it’s better to have a professional on your side before submitting your document to potential landlords. Be careful in how you quote your rent or check the rates in the area to make sure you’ve got your quotes right. Some buildings are occupied by multiple tenants so you have to make sure you understand who gets to be responsible for the taxes, insurance, and common area costs and that the proposal as a whole, is in line with your purpose.
Tips in Writing A Real Estate Proposal
Proposals, like any business document, always tend to be intimidating to write. Here are some tips to help you end up with a great proposal that would be hard to say no to:
- Request a property report: If you’re concerned about whether or not specific building inspections have been made, ask for a special report from the owner. There aren’t many disputes that irritate a landlord more than to get told halfway through a deal that the interested party, future tenant or buyer had an issue which he didn’t ask to address upfront. Both sides get frustrated. Sellers feel duped and buyers feel blindsided.
- Address all your concerns: While it’s only right to want to know the condition the property is in, it’s still important to cover all your bases or everything you want checking before leasing or buying a property. This way, the landlord would know what steps he needs to conduct on his end before a contract happens.
Types of Real Estate Proposals
- Solicited Proposals: There are a lot of organizations, government, private and nonprofit, that announces requests of proposals for specific types of services which helps them save time and overhead costs. Interested parties submit proposals addressing the organization or individual’s needs and compete with other applicants for the task or in the case of real estate, for the property.
- Unsolicited proposals: There are times when a business, a third party or individual’s specialized skills, qualifications or simple expression of convincing interest will be valuable to another entity or person, wherein the person or business didn’t make any announcement for a proposal. In this situation, your proposal should be able to state the business need and why the other party should consider your offer.
Real Estate Proposal FAQs
Why do you need to research before drafting a real estate proposal?
Proposal demands that you sell yourself, your skills or the organization you represent to sellers, landlords, potential clients and such, asking them to choose you over everybody else and hoping against hope that they would consider your offer. That’s only possible of you’ve gained a good understanding over what the other party’s goals or needs, or priorities are.
Do I need training or education in real estate before I consider writing a convincing proposal?
You don’t. But you do need to understand certain lease terminologies that only a real estate professional or an attorney specializing in real estate law can break down and interpret to and for you. The document may not be legally binding but it does hold weight when the time for drawing a contract arrives.
Sometimes it’s easy to get excited over buying a home, commercial space or investing in real estate that you don’t really put too much thought about what it entails and what comes next, which is writing a proposal that would serve as your pitch to get that property or space.
The quality of your proposal can be the deciding factor in winning a contract or a real estate business deal and it’s as important as how serious you are in getting that deal. Poorly written, and your proposal hardly gets a second glance. Well, put-together and you’re on our way to your dream house or a great investment.