How to Write an Offer Letter for a House?

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There are cases when an individual is looking to buy a house, and they even know the exact house they want to purchase. If the person can afford the house, then it may be possible to buy the house they were eyeing for so long. It also might be wise to get pre-approved for the mortgage before contacting the owners to save their time. Before purchasing a house, a buyer has to make an offer to a current owner. Sometimes, the offer is sent in the form of a letter that is called a House Offer Letter. The letter does not have to be very formal, but a buyer should follow some guidelines to increase their chances of getting the attention of a current house owner. It is suggested to follow a simple step by step guide below to include all necessary information that a current landlord may be looking for.

How to Write a House Offer Letter

Greet the Seller by Name

For a house letter to be appealing to the seller, it has to be personal. The best way to start the letter is to greet the seller by their name. Depending on the relationship with the seller, the buyer may start addressing them by their first name or their last name. Warm and welcoming greetings will also help the buyer to catch the attention of the seller from the very beginning. As an example, a house offer letter that starts with, “Dear John” or“Dear Mr. Johnson” are much more personal and appealing than the letters that start with, “To whom it may concern” or “Hello Seller.” A buyer may refer to the table below to identify the most appropriate greeting to use.

Relationship to the SellerGreeting to Use
Close PersonalDear [First Name],
Professional/AcquaintedDear [First Name], or Mr./Ms./Mrs. [Last Name]
Complete StrangersDear Mr./Ms./Mrs. [Last Name],
Don’t Know the NameDo the research and find the name in public sources.

Introduce Yourself

Before getting into the details, a buyer should have a quick introduction of themselves. It is important to keep the information relevant to the objective of the letter. It is important to keep the reader engaged, so the introduction should be relevant to the question of why the seller should consider the buyer for the house. There are many things to include, but it is important to be concise and stay on topic. Some of the things may include:

  • Full Name of a Buyer
    “My name is John Johnson, and I am interested in purchasing your property.”
  • Buyer’s Relationship Status
    “I have a wife and we are soon to be expecting our first child, which made us consider moving to a bigger house.”
  • Background Story For Buying From the Seller
    “I have been admiring your house almost every day while passing by on my way to work, and now it is a perfect opportunity for us to get to know each other and see if we can find common ground for making a transaction on the house.”

There is no perfect recipe for the perfect introduction. A buyer should stay concise, welcoming, and sincere.

Share Why You Want to Buy Their House

A buyer should also talk about why they want to buy the house. A buyer should not list reasons one by one, but they should try to make a concise description of what they like about the house. First-time home buyersmay want to consult with experienced people to determine the good characteristics of the property to include in the letter. It could be as simple as mentioning the location, neighborhood, and structure of the house itself. Even though the buyer should indicate that they want to purchase the house, excessive eagerness may be perceived as a way for the seller to ask for a higher price. It is important to balance a respectful interest in the property with not trying to look desperate.

“I am interested in your property because of how well you have maintained your house by this day. It is also located in a beautiful neighborhood with many amenities available within walking distance. In addition to all of that, since we are expecting a child soon, it is important for us to have good daycare centers and schools located nearby, and this location seems to have it all.”

Include Financial Information

Financial information is the most important part of the letter. As much as writing an appealing letter can help the owner to differentiate the buyer from other potential buyers, the seller is likely looking to get a good deal for themselves. It is also a very tricky part for the buyer since they have to offer a number that is affordable for the buyer and also would not be perceived as offensive by the owner. It is wise to include the reasoning behind offering the sum of money so that the seller understands that the buyer knows the local real estate market and will be reasonable in further negotiations. In addition, the buyer may offer an earnest money deposit to show that their intentions regarding purchasing the property are serious.

IMPORTANT: Assume that there will be negotiations. A buyer should not offer the highest price they are willing to pay from the beginning because the seller will likely ask for a higher price. If the buyer chooses to offer the maximum they can afford, then they may undermine their efforts in getting the house.

“The neighborhood has similar houses listed for the prices in the range of $250000 - $300000. Given the age of the property, the amenities included, and the land area, I would like to offer you $265000 for the property that I will be taking a mortgage for. Please let me know what you think about this offer, and if you are kindly willing to accept this deal.”

Thank the Seller for Their Attention and Time

Before ending the letter, a buyer should conclude it by mentioning the highlights. They can make it personal if the relationship with the owner allows it. They should mention the main reasons why they would like to purchase the property, and they should also thank the seller for the time and attention that they have paid reading the letter. They also should include contact information for the seller to be able to reach the buyer. It is important to work on a strong ending of the letter to remind the seller why they should choose this buyer against everyone else.

“Once again, your house seems to be perfect to start a new life with my growing family. You have done a great job maintaining the property and the surrounding. I would be happy to discuss our deal in more detail in person. Please feel free to contact me via email at john.johnson@email.com or by calling me at 888-999-1234. Thank you very much for your time and consideration, and I hope to hear back from you soon!

Sincerely,

John Jonson.”

Considerations for House Offer Letter

Every letter varies from person to person as there is no ideal recipe for writing the perfect letter. There are some factors to consider when writing the letter to make sure that there is everything that the seller is looking for and nothing that might turn the seller away. It is important to note that not all house offer letters end up being successful as many landlords see the property as an investment, and they only look for the highest price offered.

Things to Include

  • Sincere Emotions - Showing the seller that the buyer appreciates the property sincerely may differentiate the buyer from everyone else who is competing for the house through other ways such as through real estate agents.
  • Specific Compliments - Complimenting their property in specific ways is just like complimenting the owner’s efforts to maintain the property. It can make the seller feel smart and appreciated. Everyone likes to feel smart and appreciated.
  • Clear Financial Information - The main goal of the offer is to start the deal to buy the property. A real estate deal should start with a clear understanding of the financial situation associated with the deal.
  • Brevity - Time is of the essence, and the seller may be turned away by lengthy irrelevant information in the letter.

Things to Avoid

  • Changes Planned for the House - Selling a house might be a very emotional moment for the seller. They might see the house as a perfect place with everything being in order. If that is the case, the seller might consider proposed changes as an insult to their taste and lifestyle.
  • Negative Comments - Many house owners may feel emotional when selling their house. Negative comments in their address may push them over the line and break the deal even if the comments are reasonable.
  • Maximum Willingness to Pay - If a buyer indicates the funds available for them to purchase the property, then the seller might want to aim for that number instead of the one offered. The deal may still work out, but the buyer might pay more than they could.
  • Details of Formal Process - There is no need for describing the details of a formal process that includes discussion about real estate agents and inspections costs. It can happen without mentioning it in the offer letter. On the other hand, it might scare away the seller before the deal begins.

House Offer Letter Template

As an option, a buyer can fill in the blanks in the generic template below to use as a House Offer Letter. It uses a respectful tone that is appropriate for most situations regardless of the relationship between a buyer and a seller.

To: [Seller’s Full Name]

[Seller’s Street Address]

[Seller’s City, State, Postal Code]

RE: Offer letter for the house located at [Property Street Address, City].

Dear [Seller’s Full Name],

My name is [Buyer’s Full Name], and I am interested in purchasing your property located at [Street Address]. (Buyer’s Description)

I am interested in your property because (Reasons For Buying)

The neighborhood has similar houses listed for the prices in the range of [Price Range]. Given the age of the property, the amenities included, and the land area, I would like to offer you [Initial Offer] for your property. We can talk more about the price in detail in person. Please let me know what you think about this offer, and if you are kindly willing to accept this deal.

Once again, (Reiterate Main Points For Buying the Property)

I would be happy to discuss our deal in more detail in person. Please feel free to contact me via email at [Email Address]or by calling me at [Phone Number]. Thank you very much for your time and consideration, and I hope to hear back from you soon!

Sincerely,

[Buyer’s Full Name]

[Buyer’s Address]

[Buyer’s City, State, Postal Code]

Sample Offer Letter For a House

To: Joe Schmoe

123 Street Ave.

Townston, AB 12362

RE: Offer letter for the house located at 123 Street Ave., Townston.

Dear Joe Schmoe,

My name is John Johnson, and I am interested in purchasing your property located at 123 Street Ave., Townston. I have a wife and we are soon to be expecting our first child, which made us consider moving to a bigger house. I have been admiring your house almost every day while passing by on my way to work, and now it is a perfect opportunity for us to get to know each other and see if we can find common ground for making a transaction on the house.

I am interested in your property because of how well you have maintained your house by this day. It is also located in a beautiful neighborhood with many amenities available within walking distance. In addition to all of that, since we are expecting a child soon, it is important for us to have good daycare centers and schools located nearby, and this location seems to have it all.

The neighborhood has similar houses listed for the prices in the range of $250000 - $285000. Given the age of the property, the amenities included, and the land area, I would like to offer you $260000 for your property. We can talk more about the price in detail in person. Please let me know what you think about this offer, and if you are kindly willing to accept this deal.

Once again, your house seems to be perfect to start a new life with my growing family. You have done a great job maintaining the property and the surrounding areas. I would be happy to discuss our deal in more detail in person. Please feel free to contact me via email at john.johnson@email.com or by calling me at 888-999-1234. Thank you very much for your time and consideration, and I hope to hear back from you soon!

Sincerely,

John Johnson

321 Avenue St.

Townston, AB 12345

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