Are you looking for a way to make your offer more compelling? Do you want to make sure that the sellers remember you? If so, an offer letter may be the perfect thing to leave a lasting impression. These letters are one of real estate's best tools for helping an offer stand out. Keep reading to learn what an offer letter is, why it works in your favor, and how to construct one of your very own.
What is an offer letter?
An offer letter is exactly what it sounds like. It's an optional letter written by a buyer that tells the sellers why he or she is the perfect candidate to buy that particular property. It's submitted along with the rest of the offer components, like the Agreement of Sale and the Buyer's Financial Agreement, in hopes of helping that offer be chosen as the winner.
However, in contrast to the other components of the offer, this piece isn't about the bottom line. It's emotional rather than transactional. Sometimes that's what matters to the seller, rather than how much they'll walk away with at the end of the day. Sometimes they want the reassurance that will love their house as much as they have.
A great offer letter can also help you stand out from the crowd. In a situation where there are multiple offers to choose from, they can all start to blend together, especially if the proposed purchase prices are similar. An offer letter helps the sellers get to know a little bit about who you are personally. It can help differentiate your offer from the rest.
How to put together a great offer letter
Now that you know what this letter is and how it can help you to submit the winning offer, the next step is to learn how to put one together. With that in mind, here are a few pointers that can help you along the way.
Be complimentary, but not sappy
Everyone wants to hear that the amount of love and sweat equity they've put into their home over the years has paid off. Make sure you spend some time in your letter complimenting the seller on the home. Tell them what it was that is that you love about the home. In particular, be sure to point out whatever it was that ultimately helped you decide to submit an offer.
One thing to note, here, is that you should make sure your compliments are genuine and not too over-the-top. Overly saccharine language or an overabundance of compliments can come off like you're trying too hard. This can be a turn-off for some people and may actually end up working against you rather than in your favor.
Find a connection
Since offer letters are designed to target the sellers' emotions, one of the best things that you can do is establish a connection. It may help them look upon you — and by extension your offer — more favorably. The connection doesn't have to be a huge one. Something as simple as the fact that you both have kids or that you both have served in the military will do just fine.
As for how to get this information, lean on your agent. He or she should be able to suss out a few details about the sellers from the listing agent. You may also be able to learn a little bit about them while viewing the home during a showing.
Keep it short and sweet
Especially if they're dealing with a multiple offer scenario, no sellers are going to want to read a multi-page manifesto on why you want to buy the home. Make sure you keep your letter short, sweet and to the point. A couple of paragraphs should do it and you definitely don't need more than a page.
Here's where those editing skills may come in handy. I recommend writing out everything you want to say about the home. Then, scaling it back by taking out any superfluous language or unnecessary details. You may even want to have a trusted friend or family member read it over to make sure that your point is coming across well.