Finally, you’ve located the appropriate home in the ideal location to launch your own vacation rental company. The only issue is that this house has attracted admirers from other quarters as well.
You worry that you could miss this chance to fulfill your ambition since there are other offers on the table. How do you make sure your offer stands out from the competition then?
A real estate offer letter might be useful in this situation. You could be able to close the purchase or have to resume your search for the ideal house with the help of a well-written property offer letter that strikes the ideal mix between seeming pleasant and professional.
The goal is to provide the seller with just enough pertinent information in the letter about you and your offer to pique their interest while not seeming too eager.
As you can see, there are numerous possible traps to avoid while writing a successful property offer letter. Start by using this professional writing advice to increase your chances of success. We’ve developed the ideal “making an offer on a home template” to make the process even simpler.
To start your offer of sale property letter off properly, download our free real estate offer letter template right now.
What is a letter of offer for real estate?
In a real estate offer letter, you have the opportunity to explain to the seller why you are the best candidate to purchase their house. It is often written and resembles the cover letter that goes with a resume when applying for a job. Your opportunity to impress the seller with the quality of your offer and your superiority as a buyer will only come once.
Why do I need a letter of offer?
The biggest offer is important when trying to impress the seller, but it’s not the only thing to take into account. It’s crucial to understand that money isn’t always everything in this situation, especially when there is a bidding battle for a property.
Many homeowners have a deep emotional attachment to their property and want to make sure that their favorite item is given to someone who will value it and care for it in the same manner that they did.
Although it is not legally required, the letter allows you to convince the seller why your offer, even if it isn’t the highest, is worth considering.
This implies your letter should strike a balance between being formal and professional enough to be taken seriously and having enough personality to establish a connection with the seller. Finding the proper tone is crucial, and it should come from the heart.
What information need to include in my offer letter?
There are no legal criteria for what you must or must not include in your offer letter, but it is important to keep in mind that most offer letters have a set structure and generally include the same kinds of details.
It’s a good idea to include these parts since the majority of sellers will anticipate that the typical offer letter for real estate will have particular information. You may ensure that all the necessary components of a successful real estate offer letter are included by using a professional home offer letter template.
Give them the information first:
Personal information about the seller
We advise you to send your letter to the owner personally and mention their actual address since this is the person whose property you want to purchase and whom you’d want to impress.
The amount you’re willing to pay for the property must be included in your offer, even if the seller is likely already aware of the financial information. Just focus on the bottom line at this point; don’t bother about taxes or any extra costs.
What and when are your payment plans?
By telling the seller when and how much you intend to pay, you show that you are a serious buyer with a solid financing strategy. Reassuring the seller that you are a reliable buyer could be helpful.
conditional or exclusive language
Include this information in your offer letter if your offer will be subject to terms or if you want to negotiate a period of exclusivity. Mention in your letter, for instance, if your offer is contingent upon a house inspection.
Offer expiration date
To reduce the uncertainty of a protracted bidding process, you may urge the buyer to make a choice fast by selecting a validity date that is normally between 5 and 15 days.
Tell them something about you.
As we previously said, it’s a good idea to offer the owner a peek of your personality, but this does not imply that you should divulge your most intimate thoughts or darkest secrets.
Give a few personal information about yourself, concentrating on what you appreciate about the home and how you can yourself live there. Mention your family and the fact that you’re eager to settle in the area.
Be cautious. You shouldn’t bring up your collection of pet snakes at this time or the fact that your house is ideal for all-night parties.
Look for a way to connect with the owner so they feel confident the home will be in excellent hands.
Express your gratitude for the house
Add a lovely touch by telling the owner how much you like their house by mentioning some features you adored and what first drew you to the property. Everyone enjoys being recognized for their good taste and receiving compliments on it. Naturally, there is a warning in this: Be sincere and avoid going overboard. An unpleasant taste is left by fake praise.
Get in touch with the owner
Like many other purchases, building a personal relationship with the vendor could work to your advantage. During your house viewings, take note of anything that could help you get along with the owner. If you like dogs and you see one, for instance, add that you believe the home would be ideal for your dog.
What should your offer letter NOT contain?
Too many details concerning your financial situation
Other than the amount and due date of your payment, the owner doesn’t need to know anything more about your financial condition. Don’t reveal, for instance, that you’ve asked for a loan.
The specifics of how you intend to get the money to purchase the property don’t need to be disclosed to the owner. Keep the deposit amount and selling price in mind. Giving over too much now might make future discussions difficult.
Any critique of any type
You shouldn’t bring up how much you detest the wallpaper’s hue or how you want to pull down a few walls to make the space seem more open at this time. Respect the house and refrain from criticizing the owner’s sense of style.
Even if the offer letter is not a legally binding contract, you still want to make sure that there won’t be any unpleasant surprises for the seller if all goes well and you sign a purchase agreement. It can make people question your credibility.
harsh or pushy language
Yes, you are attempting to market yourself, but try to avoid being forceful or aggressive. Without disparaging the competition or boasting about your wealth, try to convince the owner that you are the appropriate candidate. The offer letter employs a method of gentle persuasion rather than a forceful pitch.
A desperate voice is never appealing. To avoid giving the vendor the appearance that you would be prepared to pay more, avoid making this error.
FAQs about letters to house sellers
Offer letters for real estate come in a wide variety of formats. The easiest approach to create one that stands out from the competition is to become an expert at creating offer letters. We attempt to address some of your remaining questions about the matter below:
Can you email a real estate offer letter?
Even while the offer letter is often in writing, it is not legally binding, thus an email offer might be permissible in theory. Having said that, a written document conveys respect and professionalism.
Does it require to include a real estate agent?
No. You may deliver the seller’s offer letter directly. It’s important to keep in mind, however, that real estate brokers often have greater negotiating experience and are knowledgeable about the market (and off-market) and the area. It would be worthwhile to include them in the bargaining process because of this.
Is an accepted offer legally binding or is the seller still free to reject it?
Once the seller has accepted your offer, they cannot withdraw it due to a change of heart or the discovery of a better offer. However, there are also situations in which the seller has the right to back out of a deal. For instance, when the buyer breaches other contract requirements or doesn’t pay the deposit on time.
Is it possible to submit an offer on a home that has a contract?
Absolutely. Sales might fall through for a variety of reasons, such as when the payment requirements are not completed. However, as previously stated, while the property is still under contract, the seller is not permitted to take into account a different offer.
Here at Lodgable, we want to help you along the way in running a successful vacation rental business. That is why we offer plenty of resources to do so. Our platform is tailored to help you increase your revenue and maximize your profits.