In many real estate markets, it can be difficult for a home buyer with a small down payment or one who is financing a home to compete with all cash buyers. These home buyers can often gain an emotional edge over the investors by writing an appealing offer to purchase letter so that the seller may see them as a person and not just a contract.
It can be difficult to write an offer to purchase letter that shares honest feelings, demonstrates stability and confidence, is flattering to the seller, yet is also humble, concise and convincing without being whiny. Creating a letter that contains the right balance of all of these things can help a home buyer get their offer selected by the seller.
Be Sincere and Likeable
People tend to like those who like them. So, tell the seller about the things that you really loved about their home. The colors, furniture, artwork and how their special touches made the home special to you. You want to be generous with your flattering without coming across like a snake oil salesman. Do not extol the wonderment of having a lawn filled with dandelions, but do praise the care they took with the kitchen upgrade. Recognize their investments, overlook any neglect.
Tell Them Why You are the Best Choice
Many sellers want to leave their neighbors with a good replacement for themselves. Pick two or three of your best attributes as a neighbor and include those in the letter. Help them visualize you fitting into the community. Tell them things such as “I look forward to joining the neighborhood cleanup in the spring and competing in the annual fall chili cook-off”. Telling them about your previous involvement as a scout leader in your old neighborhood or being block captain for your neighborhood watch can help them see you as a good neighbor and caregiver for their home. But only pick a couple of highlights so this part will have memorable impact.
Make the seller feel confident that the transaction will go smoothly if they choose work with you. Point out your ability to meet their needs regarding the move-in date, your steady employment record and other abilities to honor commitments. Being prepared and having a good previous track record demonstrates that the transaction will easily go to a smooth closing.
Honor the Sellers Position
Though you wish to tell the seller about the positive attributes you have as a buyer and demonstrate your confidence that you will be able to close the deal easily, you also want to let them know that you recognize that the seller is in control of the transaction. Express your appreciation for them working with you and ask for their blessing on your offer. Let them know that you would be honored to live in their home by keeping the tone of the letter humble and grateful.
Keep your letter upbeat, make the seller feel great about their home and about you as a buyer. Do not inform the seller of the many woes that you have suffered in trying to find a home to buy. They do not need to know that your lease is ending, or about Timmy's need for a surgery, or any other challenges you are facing. These things make a seller feel uncomfortable and possibly manipulated and they will want to distance themselves from considering your offer.
Recap the Main Points
The last paragraph of your letter should reiterate your ability to close the deal, your motivation to move in, and your excitement about the possibility of living in their home. Make it a brief reminder of the best things you offer as a buyer. One of the main things you want the seller to feel about you as a buyer is that you will be a pleasure to work with. In the letter’s closing express gratitude to them for reading your letter and giving you an opportunity to make the offer on their home.
Check Your Work
As with all important documents you want to check and recheck your letter for spelling and grammatical errors. Many people place a good deal of weight about someone's sincerity and credibility based on how well they write. Take your time to write the letter, have someone else read it and check it over once more before you send it.
A well-written, personalized offer to purchase letter is one of the best buyer strategies available, and it is worthwhile to give its contents careful consideration. If you are not comfortable writing the letter, find someone to help you write it, as it can make a large difference in setting you apart from many others who have also made offers and may have other advantages.