S.E.C. Real Estate Observer

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Editor’s Note: This article first appeared in the September, 1976 issue of The Real Estate News Observer

The Preliminary Exchange Proposal Form is designed to help expedite a volume of transaction ideas. Started in 1968 at the San Joaquin Valley Exchange meeting in Tulare, California, it has now flourished to national prominence. You just can’t go to an exchange meeting of any consequence and not see these easy-to-use forms helping generate business.

We used to struggle with pencils (yes, even typewriters) at meeting places, on that old two-sided ‘Long Form,’ wrestling with carbon paper to crank out the exchange idea. Nine times out of ten we were so absorbed in getting an offer written on a previous package (three pitches back) that we missed what was currently being presented.

So I thought, ”There must be a better way,” and went home to give it some consideration. At the next meeting, everyone was surprised at my handing the presenter an ‘instant offer’ right after completion of his pitch. The acceptability was immediate. Since it takes but a few minutes to jot down the exchange idea on the Preliminary Exchange Proposal Form, everyone started using it.

The way to get the most use out of the form is:

1. First of all, get your client’s approval to ‘offer’ in his property into opportunities that you uncover at exchange meetings and in the regular course of your daily activities.

2. Have your name imprinted on the form … a time saver at the meetings.

3. Start writing the moment an idea, or ideas, comes into your mind. Don’t wait until after the pitch or you may become distracted. Needless to say, do not wait until you get back to the office for your chances of getting the job done will decrease with each passing hour.

4. If you are generating an idea at your desk, simply fold the form so that it fits a window envelope, and let it travel. This eliminates writing a letter and addressing an envelope.

5. Never submit a proposal to another Broker unless you have a back-up package attached. How can an adequate presentation be made by another broker unless you equip him with information on the property you are proposing? Do it in longhand on yellow paper if you don’t have a prepared set-up.

6. Try to follow up on all proposals received by asking your client to accept or counter all offers you receive, subject to inspection, approval, and prior disposition. Put the decision back in the other parties’ hands.

7. When both parties are in accord, go for escrow or closing and spell out the transaction on the ‘Long Form Exchange Agreement’ with the necessary references to all the terms and conditions.