FAQ : What Is An “Offer Letter” And Why Do You Need One?

FAQ : What Is An “Offer Letter” And Why Do You Need One?
 OMG John 6/6/2018 10:56 AM

It’s not surprising that with the Omaha real estate market being so tight, most sellers want the most money they can get for their home (even over their asking price, in some cases!) and a quick closing. However, it’s also known that many sellers have built a long-term attachment to this major investment in their past - their family home.

The memories made inside the house itself and in the neighborhood surrounding it are often a bittersweet pill to swallow when it comes time to accept an offer on the home the sell has built.

Writing a letter to the tell the sellers a little about you and the attachment that you’re starting to form to their home, might give you an edge over other potential buyers.

What Is An Offer Letter?

An offer letter is simply a narrative to the seller of the property that you’re interested in buying. It should be upbeat and humble, while also stressing that the buyer is financially stable (or at least not mentioning that the buyer may not be). It should not have a begging or whining tone.

Pro Tip: While you want to make your point(s) clear in your letter, don’t go on and on and on. This isn’t Moby Dick. One page with four to five paragraphs should be sufficient to tug at the seller’s heartstrings without making them gag.

When Can An Offer Letter Be Advantageous?

If a home has been on the Omaha real estate market for a while or if your realtor finds out that multiple offers have been refused, an offer letter may be advantageous if it accompanies your irresistible offer.

There are no guarantees, even if you write the best letter, that the seller will accept your offer. However, including this offer letter can help your offer immensely.

What Should Your Offer Letter Include?

Features about the home that you’ve fallen in love with.

Flatter them a little bit. They have loved the home enough to live in it for years, let them in on why you fell in love with the property, too. Do you love the large kitchen because it reminds you of holiday dinners? Do you love the backyard because you love to entertain in the summer?

Some personal information about you, the buyer(s).

Tell the seller about how long you’ve been searching for the perfect home, or why are you interested in that neighborhood or area of Omaha. Maybe you are you relocating from another city for a job or family and fell in love with Omaha.

How you plan to utilize the home.

This is especially effective for first-time homebuyers or moving families, not as much if you’re looking to invest in a rental property. Maybe you are planning on starting a family and growing in to the home.

Similarities between you and the seller.

Keep this part brief and to the point. You don’t want to come across as creepy. As you walked through their home, you may have noticed that you and they both have the same number of children or that their favorite sports team is the same as yours. Feel free to include a brief note about this, adding that it made you feel so much more at home when you were walking through.

It’s best NOT to mention:

Potential remodeling. It’s not going to touch their hearts to know that you’re going to be changing things that they probably love.

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If you and your family are preparing to sell your home or are getting ready to start house-hunting, contact the Fairfield Team and we can help you get started or answer any questions about the Omaha real estate market!