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102 - Onboarding > Contracts > Scenarios

Scenarios

Offer Writing Practice

This section is designed to help you build confidence and competency when drafting real estate offers. You’ll learn how to structure contracts correctly, understand key forms and clauses, and practice writing clean, competitive offers that best represent your clients’ needs.

Below are ten scenarios designed to help you master the art of writing offers. Start by drafting your first standard offer to familiarize yourself with basic offer structuring. Once completed, send the offer in PDF form to the Transaction Manager (transactions@designwarealty.com) for review and feedback.

Use that feedback to refine your skills and draft the following offers in batches. Once each batch of offers is complete, send the PDF offers to the Transaction manager for review and further feedback.

Batch One:

  • Pre-Inspection

  • AS-IS with Inspection

  • Inspection Waiver

Once completed, submit your work to your instructor for review and feedback. Apply the guidance you receive and repeat the process for the next set of scenarios:

Batch Two

  • Escalation Clause

  • Low Appraisal Guarantee

  • Waiving Financing with a Loan

After completing Batch Two, send your offers to your instructor for review and feedback. Incorporate the feedback, then move on to the next set:

Batch Three

  • Earnest Money Release

  • Credit to Buyer

  • Buyer Leverage

NOTE If you are stuck on how to structure an offer, read the forms, then read the manuals (found in Xpress Forms). If all else fails, reach out to the Transaction Manager at transactions@designwarealty.com for guidance.

Standard Offer


  • Buyer: Larry Bird – Unmarried, 20% down payment via conventional loan. Requests an inspection and title review.

  • Property: MLS #2165874, on market for 22 days, recent price reduction 4 days ago, no other offers.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and including inspection and title contingencies.

Download: Once completed, please download the PDF from Authentisign and email it to transactions@designWArealty.com for review and feedback.

Pre-Inspection

  • Buyer: Richard and Lynn Cheney – Married, 0% down payment via VA loan. Requests an HOA and title review. Willing to waive inspection based on their pre-inspection.

  • Property: MLS #2159099, on market for 7 days.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and including HOA and title contingencies. Waive the inspection contingency using a Form 35W and make attractive enough to reflect the short time on market and lack of other interested buyers to this point.

Download: Download PDF and save to send to instructor as part of Batch One.

AS-IS Inspection

  • Buyer: Leonard Skinnard and William Hurt – Married, 10% down payment via conventional loan. Wants an inspection, but is willing to waive the contingency (AS-IS). Willing to waive their title contingency as well, and their financing contingency after 15 days.

  • Property: MLS #2183983, on market for 15 days. Seller needs 24 hours to respond.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms. Utilize a Form 34 with the following language to waive the contingency but still have legal permission to conduct a home inspection.

  • INSPECTION: This Agreement grants access to Buyer(s) with inspections of the Property and the

    improvements on the Property. Buyer’s inspections may include, at Buyer’s option and without

    limitation, the structural, mechanical and general condition of the improvements to the Property,

    compliance with building and zoning codes, an inspection of the Property for hazardous materials, a pest

    inspection, and a soils/stability inspection. Buyer’s general home inspection must be performed by

    Buyer or a person licensed under RCW 18.280. Buyer may engage specialists (e.g. plumbers, electricians,

    roofers, etc.) to conduct further inspections of the Property. Buyer’s inspections are for informative

    purposes only. Buyer elects to purchase property in AS-IS condition.


To waive title, simply do not include the 22T. Make attractive enough to reflect the short time on market and lack of other interested buyers to this point.


Download: Download PDF and save to send to instructor as part of Batch One.

Inspection Waiver

  • Buyer: Les Claypool – Married (But buying as his separate estate), Cash – will sell Meta stock. Willing to waive inspection, but wants septic and well contingencies.

  • Property: MLS #2171630, on market for 7 days.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and including septic and well contingencies. Waive the inspection contingency with a form 35W, use Form 22EF to disclose the contingent funds, and make attractive enough to reflect the short time on market and lack of other interested buyers to this point.

Download: Download PDF and save to send to instructor as part of Batch One.

Send to Instructor: Send all practice offer PDF’s from Batch One to Transactions@designwarealty.com for review and feedback.

Escalation Clause

  • Buyer: McGee Properties LLC, Tate McGee provided you an LLC operating agreement identifying him as the Managing Member and an authorized signer. Cash – Liquid in a checking account. Willing to escalate to 825k. Relying on your guidance for integer. Wants a septic inspection, home inspection and doesn’t want to waive any of his normal contingencies.

  • Property: MLS #2147262, on market for 4 days 2 other offers.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and include septic, inspection and title contingencies. Make sure to add a 35E – Escalation Clause to the contract.

  • Some counties have specific septic forms. For King County, look for the 22S-King County

  • When a company is purchasing or selling property, you need a copy of the formative documents. For an LLC this is the LLC operating agreement, for a corporation it is the articles of incorporation. You need this document to determine who has legal signing authority for the company. You then have the person sign in their capacity as it is related to the company. in This case, the buyer is McGee Properties LLC, and Tate McGee would sign as “Tate McGee, Managing Member”

Download: Download PDF and save to send to instructor as part of Batch Two.

Low Appraisal Guarantee

  • Buyer: Lindsey Williams and Serena Williams – Unmarried -30% down Jumbo loan. Willing to escalate to 2.6m. Relying on your guidance for integer. Willing to guarantee up to 200k if appraisal is low. Willing to waive everything but financing.

  • Property: MLS #2184665, on market for 4 days 2 other offers.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and include financing contingency and waiver of inspection. Make sure to add a 35E – Escalation Clause to the contract. Use a 22AD – Increased Down Payment for Low Appraisal addendum to guarantee the appraisal.

Download: Download PDF and save to send to instructor as part of Batch Two.

Waiving Financing with a Loan

  • Buyer: Chuck Yeager – Unmarried -20% down conventional loan. Willing to waive everything but his inspection.

  • Property: MLS #2177397, on market for 8 days 3 other offers.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and include an inspection contingency. Since you are writing an offer in an area outside your normal operating area, make sure to scan through Xpress forms for any county specific forms you may need to include. Utilize a Form 22EF to disclose the buyers’ reliance on obtaining a loan, while not including a financing contingency.


Download: Download PDF and save to send to instructor as part of Batch Two.

Send to Instructor: Send all practice offer PDF’s from Batch Two to Transactions@designwarealty.com for review and feedback.

Earnest Money Release

  • Buyer: Jill Biden and Joseph Biden – married – Cash buyer – Funds held outside the United States. Willing to release their EM to secure the deal for the big guy.

  • Property: MLS #2183683, on market for 8 days 9 other offers.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms. Disclose the funds held outside the US with a Form 22EF. *Remember* – contingencies exist to protect the buyer’s earnest money. If they are releasing their earnest money to the seller, then it renders your contingencies moot as there is nothing for the contingency to protect anymore. Utilize a Form 34 with the following attorney approved language (THIS IS THE ONLY LANGUAGE YOU CAN USE FOR RELEASING EARNEST MONEY):

  • The Earnest Money shall be released to Seller _____ (10 days if not filled in) after mutual

    acceptance of this Agreement. Buyer and Seller agree that the holder of the Earnest

    Money is instructed to release the Earnest Money to Seller without need of further

    authorization by Buyer. When due for release to Seller, the Earnest Money shall convert

    to a non-refundable deposit applicable towards the Purchase Price and shall immediately

    be the property of Seller and no longer Earnest Money. If this transaction fails to close

    for any reason other than default by the Seller, the non-refundable deposit shall remain

    the property of the Seller. This provision does not require the holder of the Earnest

    Money to release any funds that have not become available from Buyer as liquid funds.


Download: Download PDF and save to send to instructor as part of Batch Three.

Credit to Buyer

  • Buyer: Janet Reno – Unmarried, Daughter Paige Dougherty has Power of Attorney. Cash (liquid) buyer. Requests a 35 day feasibility contingency. You’ve agreed to credit half the commission back to the buyer.

  • Property: MLS #2161310, on market for 122 days, price reduction 40 days ago, no other offers.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and include a 35F feasibility contingency. Include a Form 41C for the credit and make sure to check the correct box on page one of the PSA reflecting the commission.

When a power of attorney is involved, it is important to understand the distinction between power of attorney and attorney-in-fact. The ‘(General, Durable, Non-Durable, Medical, Financial) Power of Attorney’ document is the legal contract that grants the ‘Power of Attorney’ for the Principal to the ‘Attorney-in-fact’. You always need a copy of the contract for your file, so get it early on before you have them sign any documents. When you write the contract, the Principal is the Buyer, but the Attorney-In-Fact will sign on their behalf.

  • Buyer: Janet Reno Signature: Janet Reno, by Paige Dougherty, her Attorney-In-Fact Initials: PD, AIF


Download: Download PDF and save to send to instructor as part of Batch Three.

Buyer Leverage

  • Buyer: Terrance Howie III – Unmarried, 3.5% down payment via FHA loan. Requests an inspection and title review. Needs 25k towards closing costs.

  • Property: MLS #2170853, on market for 88 days, 3 price reductions, no other offers. “MOTIVATED SELLER” written in agent remarks.

Draft the Offer: Prepare the offer reflecting the buyer’s financial terms and including all normal contingencies. Extend timelines to give extra time to buyer. Make closing costs demand in the 22A. Ensure offering price and terms reflect the favorable leverage position your buyer is in.

Download: Download PDF and save to send to instructor as part of Batch Three.

Send to Instructor: Send all practice offer PDF’s from Batch Three to Transactions@designwarealty.com for review and feedback.