Offer letters can be a powerful tool to make your offer stand out to the owner.
Making an emotional appeal to the seller can help humanize the transaction.
Download our offer letter template to help you brainstorm your own letter.
When a seller receives multiple offers and offer letters, how do you make yours stand out? By using a real estate offer letter template, you’re following a professional format to make an emotional appeal, but without going overboard. Keep reading to find out how to construct a winning real estate offer letter. Not only that, but make sure you download the free real estate offer letter template at the end of this article to add to your home-buying toolkit.
A real estate offer letter is a physical representation of a prospective buyer’s intentions to buy a home. As its name suggests, a real estate offer letter is a letter (handwritten or typed) given to the owner of a property in order to inform them of a prospective purchase. Not only that, but a good real estate offer letter will (not surprisingly) present the owner with an objective offer. That said, writing an offer letter isn’t as simple as telling the owner you want to buy the property; you need to approach the situation tactfully. There are several things a good real estate offer letter will have in it, not the least of which I will go into detail below.
The hardest part about writing a real estate offer letter will be including all of the necessary information, while sticking to the point. A strong offer letter should stay around one page long, or 1000 words. Keep this in mind as you walk through the following steps:
Make your case and state why you want the property
Include something personal and connect with the seller
Support your offer with necessary financial information
Gently explain any contingencies you may have
Make Your Case
In some instances, a seller will merely be looking for an offer that allows for a smooth sale. However, in other cases, a seller may have an emotional attachment to their property and will want it to go to the “right” buyer. Buying and selling a home can be a highly personal experience, so writing a heartfelt offer letter can help humanize the transaction. Attempt to make your case, but remember to limit the personal information. A good guideline is to treat the letter like you are talking to a new friend. Include personal details, while still keeping it short and to the point.
Letters are helpful for making your offer stand out in a competitive environment, or for explaining your offer if it is lower than the asking price. In some cases, sellers may opt for buyers with a slightly lower offer because they want the property to go into good hands. State why you want to purchase the home, and demonstrate why you would be a good fit. This portion of the letter should show how serious you are about the property. All in all, making your case is about finding balance. Aim to be personable and sincere, without divulging too much information.
Build A Relationship With The Seller
There are several approaches to help making your offer letter stand out, all of which hinge on your ability to make a connection with the seller. When writing your offer letter, find specific ways to relate to the seller’s emotions—and take a problem off their hands. For homebuyers, perhaps you can outline why this property is perfect for you and your family. For investors, appeal to how you can provide a solution to the seller’s needs, such as offering to pay for moving or cleaning services. Put yourself in their shoes and think through how you could help the situation run more smoothly.
As you write, be sure to stay honest and friendly without going overboard or sounding phony. The idea is to make your letter stand out because of its sincerity, not because of its drama. Some ideas include handwriting the letter and envelope addresses; attaching a photo of your family or pets; or even including a drawing made by your child. This is your chance to make a strong impression on the seller.
Support Your Offer
The details of your offer are essentially the meat and potatoes of the letter. This is where you will outline the specifics, and hopefully meet the conditions of the listing. Include information on your loan status (if you are approved) and the amount of your down payment. Be careful to avoid overstating your financial status, and instead stick to your offer throughout the letter. Any financial information should be direct and accurate, as misrepresenting yourself could cause problems during negotiations. This is also a good time to reinforce the closing date, which will let the seller know you are ready to move forward with the transaction should your offer be approved.
Explain Your Contingencies
The end of your letter should accomplish two main things. First, it should outline any contingencies that you have for the property. These could include getting a home inspection or appraisal, for example. Don’t worry about “ruining” your chances for the property, as these topics will likely be revisited during negotiations. It is more important to be transparent about your expectations.
Finally, the conclusion should reiterate why you are the best fit for the property. For example, if there are any special features within the house that stand out to you, like a stone fireplace or stained glass window, mention them as you wrap up your letter. Write a sentence or two explaining their significance to you, and how you will incorporate them into your plans for the property. This will allow you to bring the focus back to the home, while also ending on a personal note.
[ Do you know how to negotiate contingencies in a real estate contract? Click this link for our guide to real estate contingencies. ]
Real Estate Offer Letter Template Free
Click the image below to download the offer letter template, which provides a professional layout and will help you brainstorm talking points for when you craft your own stand-out offer letter:
A strong offer letter could mean the difference between securing a great property, or walking away empty handed. That’s why it is important to build a positive relationship with the seller and provide them with peace of mind. Always maintain a balance between personal and professional; and above all demonstrate your genuine interest in the property. Remember: whether you are an investor or first time homebuyer our real estate offer letter template is here to help.
Have you had any trouble writing an offer letter of your own? If so, try using our real estate offer letter template. Let us know how it helped you in the comments below.