It's no secret that competition for home buyers is at an all time high. Now more than ever, home buyers need to implement the right strategies to compete with multiple home offers to win over the home seller. A home offer letter is a way to gain an edge if the home seller has an emotional attachment to the house.
The first step to writing a stellar home offer letter is preparation. You should ask your realtor what they know about the home seller so you can determine if you should write an offer letter. Research the home seller and find out why they are selling the home before deciding whether to write a letter to the home seller.
Once you understand why they are selling their home, consider how to make a connection with them. Think about what you loved about the home and if there are personal hobbies you and the home seller share. For example, if a well-maintained garden really caught your eye because you enjoy gardening, bring this up in your offer letter. You only need two to three of these personal connections. It's best to keep the letter to just one page.
The longer the letter, the less likely the home seller will read it. Keep it short. The very first sentence should thank the home seller for providing you the opportunity to view their lovely home. This means beginning the first sentence with a positive narrative voice and keeping it that way throughout the entire letter. Although it may be tempting to talk about the stress you’ve been under or difficulties you’ve had with certain sellers, that can easily turn the reader off from your home offer.
Introduce yourself and your family. Make sure you note any connections you and your family have with the seller and their loved ones in the home. Lead into the following one to two paragraphs about what you enjoyed the most about the home and state the similarities that relate to those home features such as gardening, reading, wine collecting, bird watching, pets, working from home, etc.
Your statements about the home should show and not just tell the reader how much you enjoyed their home. Write using examples of how you and your loved ones would use their home features. For example, “I enjoyed the study room of your home and thought the children’s library section to be so adorable. My children, Terry and Jacob, are avid readers and would spend hours each day in the room.” It isn’t enough to just tell why you and your loved ones would enjoy the home, give examples to show how.
The home offer letter should not go into any detail about how you would change the home. You want to show the home seller how you would enjoy the home as they did to keep that connection with them. Writing a letter about how you would redesign the home to make it your own can make the home seller feel much less of a connection with you.
The last paragraph should recap why you and your family love the home. This should be no more than two sentences. The final one to two sentences should be about how you can see your family living in the home. Instead of ending the letter with "Sincerely" or "Kind Regards," use a sentence that states how your loved ones would enjoy being the new homeowners.
It can be tempting to write new negotiations in the offer letter such as waiving certain contingencies to try to win over the home seller. Any new items you wish to bring to the seller need to be discussed with your realtor first and should never be included in the letter. You don’t want the letter to suddenly turn transactional in tone. This will make your emotional approach in the letter appear insincere to the home seller.
If the home seller is an investor or never lived at the home more than likely the home selling processes is purely transactional. Therefore, the potential home buyer should not write a buyer letter to the seller. Additionally, if the home seller is trying to sell the home as quickly as possible because they are tired of being a landlord, then there is no need to write a letter to try to appeal to an emotional attachment which more than likely does not exist.