In most cases, people who want to buy a house, make an offer through a real estate agent. The agent also wants to make the sale, so he or she will do their best to bring the offer to a sale. However, buyers can help the situation towards a successful conclusion, if they write a personal home purchase offer letter to the seller. This letter offers the buyer the opportunity to present reasons why their offer is the best. It will make that particular offer stand out in the eyes of the seller and can go a long way to convincing them that this is the best offer. Money is not always the main reason a seller chooses a buyer.
The technique of sending a separate home purchase offer letter is called loading and should concisely recap the information found during a comparative market analysis (CMA). It is especially important if the offer is below the asking price, because most sellers will not accept a low offer. The letter can help convince the seller that accepting this offer is a good decision.
The main reason for sending this type of letter is to make sure the seller has all the facts. Since both agents would need to review the CMA of the locality, and since this is unlikely, the buyer can make sure the seller knows the information. The letter also gives the buyer an emotional edge because the seller may relate to the buyer as an individual and not just as a third party.
The letter may also offer a larger down payment. This may be effective, especially if the offer is below asking price. The buyer could also suggest increasing the deposit to five percent of the asking price if the mortgage financing or home inspection contingencies are removed.
Some tips for writing a home purchase offer letter:
• The letter should begin with the emotional side, convincing the seller that the buyer is a good person. To achieve this, it is recommended by realtor.com to flatter the seller by praising the decoration or design of the house and, for example, complimenting them on the DIY back yard. It should say why the buyer wants to live in the house. For example, they want to live near their grandchildren.
• The letter should be short and only give two or three main points. The seller may receive several letters, and he or she will only remember a few facts. The simpler the message, the easier it will be to remember. It may also help to include a few photographs of the family or children of the prospective buyer.
• The letter should be specific about the locality. It is better to say, I enjoyed rollerblading on this street when I was a child rather than, I grew up in this neighborhood.
• The letter should not mention any planned remodeling. Even if the buyer wants to change several things, this is not the time to mention it.
• The letter should give the impression that the buyer is humble, financially stable and upbeat. It should not have a begging or whining tone. The seller is not interested in the buyer’s problems.
• The letter should provide facts and figures that support the buyer’s offer
Below is a sample home purchase offer letter. It is a formal business letter and should be typed and printed with correct spelling and grammar. The letter may be sent by certified mail, so the sender is sure it was received.
Sample Offer Letter for a House
Name of Buyer
Address of Buyer
City, State, Zip Code
Name of Seller
Address of Seller
City, State, Zip Code
Dear Name of Seller:
My wife and I have been looking for a home in the NAME OF AREA for the past six months. When we saw your house for sale, we were so happy because it seems perfect for us. We like being within walking distance of downtown and we have several good friends who live nearby. We also like the big backyard and the school district for our two children aged seven and nine.
We realize that our offer is a bit lower than your asking price, but we have researched other houses in the area and feel that our offer is fair. We are willing to give a 20 percent cash deposit and coordinate the closing with the new property you are purchasing.
For your information, we have pre-approval from our mortgage lender and have no contingencies on the sale of another property. We do not asked for major improvements on the house.
Thank you for considering our offer. We look forward to enjoying the house as much as you have. If you have any questions, I can be reached at Phone Number or at Email Address.
We hope to hear from you soon.
Signature of Buyer
Printed Name of Buyer