Owning a home is a big expense—especially when it comes to maintaining the home and improving its value. Up Next: Preparing A Homeownership Budget When you need to borrow money for an emergency like flooding, there are two options you may consider: a home equity line of credit or a home equity loan. While similar […]
How to Write an Offer Letter
Putting in an offer on a home you want to purchase has become very competitive and buyers have become more ambitious. Due to limited inventory in the housing market, buyers may need more than just money to get the home they want. Homebuyers attempting to stand out from a crowd of offers in today’s market typically write a personal letter to accompany their offer. Here are some of the best practices for writing an offer letter for a home:
Get Pre-Approved Before Writing an Offer Letter
One of the things sellers will be looking for right off the bat is that the buyers are pre-approved for a home loan. Don’t submit an offer letter without first getting pre-approved. A pre-approval letter demonstrates that the lender has verified your income and other required documents.
Keep it Brief
When writing an offer letter, keep it brief. Sellers don’t have time to read an essay, so keep it no longer than a page. Instead of writing 20 reasons why you would be the best buyer for the home, choose two or three solid reasons instead. The more clear and concise your message is, the more likely the seller is to remember it.
Appeal to the Seller’s Emotion
For some sellers, it’s not always about the highest offer—they want to know their home will be in good hands after they sell it. This is where your personal feelings for the house come into play. Talk about what you love about the home and how you look forward to starting a new life there. Sellers are more likely to sell to someone they have something in common with.
Remember, it’s still someone’s home. So don’t talk about your plans for remodeling, because at this point in time, sellers will still be protective of their old home.
Whatever You Do, Stay Positive
Sellers want to know that their home is going to the right people, so keep your offer letter positive. So avoid talking about things like your loss of a previous home. If you’re trying to emotionally appeal to them through guilt, you’ll only succeed in making them uncomfortable and throwing out your letter.
Keep it Free of Errors
Yes, you are being judged based on how well you can write. Letters that are free from errors will be taken more seriously than those that are poorly written and have a better chance of snagging you the deal. When writing an offer letter, triple check your spelling and grammar and have someone else read it before you mail it off.
Have a Polite Conclusion
End your offer letter with a friendly signature like “Thank you for the opportunity.” Politeness can go a long way, so briefly sum up the letter and thank them for the opportunity to purchase their home. Doing so is not only polite, but showing professionalism in a business transaction.