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As a potential buyer for a house, you would make an offer on paper to the owner of your intentions. Before the sale can get finalized, the owner would require you to first meet certain conditions. As such, you have to write an offer to purchase real estate which outlines the potential real estate agreement between you and the owner of the property.

Why do you need this document?

The real estate offer letter helps the seller establish an emotional connection with you as a potential buyer. You can accomplish this by sharing some personal thoughts about yourself and the reasons why you liked the property. This information makes you stand out from others, especially when the property has a lot of buyers.

When drafting the offer to purchase real estate, you should consider how the seller feels about your offer. For instance, this same house is where the seller raised their kids, which means that for them, it would be full of happy memories. It will mean a lot to the seller to know that they would sell their home to someone who will take good care of it.

However, this letter isn’t always in all situations, for instance, if the house up for sale is part of a divorce agreement or some other negative circumstance. In such a case, you don’t have to write this letter so you can avoid creating potential conflicts.

Downloadable Templates:

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Factors to consider

One of the first challenges that you might face when purchasing a real estate property is how to determine your purchasing power and which property will suit your needs. It’s essential to determine your purchasing power. This refers to how much you can afford to buy a property either through financing or cash.

You may have to view several properties to gain an understanding of your needs and wants. This will help narrow down your search in choosing the best property. You need to identify these challenges before getting into an offer to purchase real estate.

This avoids the occurrence of future problems with your contract. Here are the factors you must consider before making your offer to purchase real estate form:

  • Your objective
    The main aim of a real estate purchase offer is to come to an agreement that’s acceptable to both you and the seller so that you can both sign a contract with the intention of progressing to the next stage.
    You may consult with a real estate professional skilled in drafting offers and explaining what they involve. They can provide the answers to any inquiries so that you and the seller can come to an agreement about the terms to specify in the agreement.
  • Identification of the property
    This involves two of the most essential features in your agreement – the price and the identification of the property for sale. You can find the information about a property in records stored at the property appraiser’s office in your locale or at the tax records office. The basic information includes:
    The property’s exact address
    A legal description of the property
    The owner of the property as written on the title
    The price of the property
    Details about milestone payments
  • Terms
    You should include the terms agreed upon by you and the seller. For instance, the time of the inspection of the property, the property’s appraisal, and other items that are time-sensitive.
    This provides both of you with an understanding of the processes involved in the deal. Usually, these facts could prove to be more significant than the property’s actual purchase price. There are also many sellers who would demand specific contingencies or qualifications that you must meet when presenting your offer.
  • Times for an offer and acceptance
    When you present your offer to purchase, remember that it isn’t an open-ended offer as it will expire at some point. A good move is to include a reasonable deadline with the offer. This will motivate the seller to agree and control their offer liability in the event that all of the terms get accepted.

How do I write an offer letter for a property?

Before you can buy a house, you first need to make an offer. You do this through an offer to purchase real estate that includes an explanation of your interest in purchasing the home along with details about your target closing date and mortgage financing.

Generally, the key to creating the best real estate offer letter is to first find a way to connect with the seller on a personal level. Here are some pointers to guide you as you write your real estate purchase offer:

  • Address the seller by their name
    Starting the greeting of your real estate offer template with “Dear Seller” won’t earn you any plus points. The recipient may even deduce that you don’t even know their name or worse, they would think the letter is one of several photocopies you have sent to several sellers.
    You can immensely improve your chances of securing the seller’s attention by addressing them by their name. If you don’t know the name or cannot find it online, you can contact your real estate agent for this information.
  • State the things you like about the home
    The seller will have an interest in your reasons for choosing to buy their home. As such, it’s recommended to mention this near the start of your letter. Even the smallest flattery can do wonders for your chances.
    You can even include an appreciation of how well the seller has maintained the home over the years. Include specific things that you like about the home then talk about how the house differs from the others you have seen.
  • Share something about yourself too
    After complimenting the seller and their home, share some details about you too. Since the objective is for the seller to select you among the other potential buyers, it would be a great idea to mention memorable facts about your persona. Talk about your family, where you’re moving from, or other things that would provide the seller with a sense of what moving into the house will mean to you.
    Don’t include any plans for renovations. Even if you want to build a basement or convert one of the rooms into a gym, discussing such changes might offend a seller who feels attached to a house they have loved through the years.
  • Add a personal picture
    If you’re still having a challenging time selling yourself as the best buyer for the home, you can draw them in by including a photo of yourself, your family, and even your pets. This way, the seller can picture you as the best occupants of their home.
  • Talk about the things that you have in common
    You can develop a good relationship with the seller by finding out what you have in common. This is an effective and common strategy to give you an edge over other potential buyers. For instance, you can point out to the seller that you are both car lovers or avid art collectors. Just don’t overdo it as this might make the seller feel uncomfortable.
  • Keep the letter short
    A well-maintained home will certainly draw in plenty of bidders. This means that the seller will have to read a lot of home offer letters. To unburden the seller with this task, it’s important to keep the letter short and concise. You don’t need to beat around the bush or bore the seller too much with a long and winding essay.
  • Close your letter appropriately
    Make sure your letter starts strong and ends strong too. In the conclusion, you can reiterate your genuine interest in buying the home. It’s also as important to thank the seller for considering your offer.

Can I make an offer on a property under offer?

Theoretically speaking, a property is “under offer” when someone has made an offer to purchase real estate but got rejected by the seller. Most real estate agents usually avoid using this term in many circumstances. Most sellers object to its use as it can have a connotation that turns off prospective buyers.

But the term “under offer” can become applicable when a seller accepts an offer to purchase real estate form, whether or not at the full asking price. In such a case, you can consider the property to be under offer and can be legally described as such, whether on websites or on real estate boards.

Most of the time, real estate agents will typically stop showing the house to other potential buyers in this case, although the situation is far from cut-and-dried. Sometimes, the practice of ‘gazumping’ can happen.

This is when a new buyer will make a better offer on the property that’s already under offer. However, this practice is no longer as prevalent now as it once was but it still occurs quite regularly.

If you’re interested in a specific property and you find out that it’s “under offer” or “sold subject to contract,” you shouldn’t make the assumption that it has been permanently taken off the market. A property can only reach this point when the buyer and seller have exchanged contracts.


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