While most sellers are financially motivated, homes don’t always go to the highest bidder. In addition to a proposed sum of money, a compelling offer will typically contain several other elements. A carefully-crafted letter is often one of them.
Writing to a seller gives you the opportunity to explain why you want to buy their home—and what’s in it for them. While many buyers are skeptical about the potential impact that offer letters have, they can be important differentiators (especially in competitive situations).
If you’re currently on the home hunt, here are five tips you can use to write an offer letter that will appeal to sellers…
1) Find a personal connection
On a very basic level, human beings prefer to deal with those who they share a sense of camaraderie with. For this reason, it’s a good idea to pay attention to what you have in common with sellers when you tour their homes. When you write your offer letter, include a subtle reminder of what your shared interests. Whether it’s a passion for rescuing animals or a love of a local sports team, your common ground can create feeling of goodwill and open up the lines of communication.
2) Compliment the home
Even when they’re in the process of leaving, most sellers have strong feelings about their homes. A house or condo can hold a lot of memories, and moving on can make many people sentimental. Showing that you too feel a connection to a home by explaining what you like about it can have a reassuring effect on sellers. In your offer letter, be specific about the features you’re excited about—and don’t forget to state your intention to take good care of your future space.
3) Show you’re serious
The last thing a home seller wants is to accept an offer from a buyer who will later back out of the deal. Your letter is the perfect opportunity to communicate how eager you are to go the distance. One of the best ways to do that is by conveying your willingness to close quickly. If you’re prepared to make concessions that will move the process along (including a cash purchase), tell the seller. You can also build confidence by including a mortgage pre-approval—a surefire way of showing you’re prepared to follow through.
4) Be concise
In many cases, the success of a large transaction comes down to clear and effective communication. That’s why a concise offer letter is bound to make a much stronger impression than one that’s long-winded. While highlighting the common ground you share with a seller can work to your advantage, your primary focus should be the benefits associated with your offer. Structure your letter around these points, and make sure that the end result is no longer than a page.
A well-crafted letter can be part of a truly compelling home offer. Ensuring that your writing is personal, complimentary, and to the point can help you make a persuasive case for why a seller should enter into a transaction with you.
Thinking of purchasing a home in Toronto? Reach out to learn more about the buying process—and discover what’s available in the market right now.