Putting together a successful offer
How to Craft a Winning Offer Using NWMLS Forms
In today’s competitive real estate market, a well-structured offer can mean the difference between securing a home and walking away empty-handed. As a real estate agent, it’s crucial to understand the essential NWMLS forms that go into making a strong and successful offer. Here’s a breakdown of the key forms used in Washington State and how they contribute to a solid purchase agreement. A typical offer can easily succeed 35 pages. It’s crucial to have a Real Estate agent who understands the fineprint of these important documents.
Form 21 – Residential Purchase and Sale Agreement
Form 21 is the backbone of any real estate transaction. It outlines the terms of the purchase, the parties involved, the price offered, the closing date, earnest money, included items, condition of the title, key deadlines and so on. This document establishes the legal framework for the sale and ensures both parties are on the same page from the outset.
Form 22A – Financing Addendum
Most buyers rely on financing to purchase a home, making Form 22A essential. This addendum specifies the type of loan the buyer is obtaining, their down payment amount, and the deadline for securing financing. It also includes details on how a low appraisal gets handled and whether the buyer is asking for seller concessions towards the buyers settlement costs. This contract protects the buyers earnest money if the buyer is unable to obtain financing by closing after a good faith effort.
Form 22D – Optional Clauses Addendum
This form allows for various optional clauses, such seller cleaning, HOA review and home warranties. 22D can help tailor an offer to meet the buyer’s needs while addressing potential seller concerns.
Form 22J – Lead-Based Paint Disclosure
If the home was built before 1978, Form 22J is required to inform buyers of potential lead-based paint hazards. Buyers are given the opportunity to conduct a lead-based paint inspection or waive their right to further investigation.
Form 22K – Identification of Utilities
Form 22K ensures transparency by requiring sellers to disclose all utilities servicing the property, including water, sewer, electricity, and garbage providers. This helps buyers understand what services are available and plan accordingly.
Form 22T – Title Contingency
A clean title is essential for a smooth transaction. Form 22T protects buyers by ensuring they receive a clear title free of liens or encumbrances. If any title issues arise, this form outlines how they will be addressed before closing.
Form 35 – Inspection Contingency
A thorough home inspection is vital to uncover any potential issues. Form 35 allows buyers to conduct an inspection and negotiate repairs or credits. In competitive markets, buyers may opt for a pre-inspection or waive this contingency to strengthen their offer.
Form 17 - Seller Disclosure statement
Most sales involve the state required Seller procured disclosure statement. This 9 page questionnaire goes into the details of what the seller knows about the property, including roof leaks, water damage or other known material facts.
Form 22WW – Septic Inspection Contingency
If the property has a septic system, Form 22WW ensures that a septic inspection is completed before closing. This form sets the timeline for the inspection and dictates what happens if repairs or further evaluations are needed.
Escalation Clause – Form 35E
In multiple-offer situations, an escalation clause (Form 35E) can give buyers an edge by automatically increasing their offer up to a set maximum if a competing bid comes in higher. This strategy helps buyers remain competitive while staying within their budget.
Form 22B – Buyer’s Sale Contingency
For buyers who need to sell their current home before purchasing a new one, Form 22B is used to make the offer contingent on that sale. This form outlines key timelines, such as how long the buyer has to sell their home and the conditions under which the seller can consider backup offers.
Additional Forms for Competitive Offers
Form 22AD – Additional Down Payment Addendum: Shows a buyer’s willingness to cover a low appraisal difference, making their offer more attractive to sellers.
Standard Timelines to Keep in Mind
Earnest Money Deposit: Typically due within 2 days of mutual acceptance.
Financing Contingency (22A): Often “survives” closing
Inspection Contingency (35): Usually about 5 days after mutual acceptance.
Title Review (22T): Generally provided within 5-10 days of mutual acceptance.
Final Thoughts
As you can see, even a “simple” offer to purchase a home can become quite involved. A well-prepared offer using these NWMLS forms ensures clarity, protects both parties, and increases the likelihood of acceptance. As a real estate agent, understanding how to structure an offer strategically can make all the difference in helping you secure your dream home. Negotiations also involve professionalism in regard to relations with the other broker. A level headed, friendly, patient and calm but also concise mindset is important to carry a transaction to the finish line.
