How and When to Write a Buyer’s Offer Letter
A buyer’s letter is sent to the seller on behalf of the buyer. It is a unique way to make your offer stand out among your competition. It sounds strange, but in many cases, it needs to be done, and, more importantly, it often works. If this is the season when you plan on buying a home and you want to get a potential edge over your peers, keep reading.
When You Should Consider Sending a Buyer’s Letter
You can send a letter with any bid, but there are two scenarios where a personalized letter is particularly recommended.
Scenario #1: When It’s a Seller’s Market
If you know there are multiple offers on the home, a letter may help yours stand out, especially if everyone is offering close to the same amount. Sometimes sellers choose a buyer based on something trivial, such as the buyer’s age, whether they are single or married, if they have kids, or even where they work.
A letter helps them visualize you living in the house, and might show them that you are the best fit for both the home and neighborhood.
Scenario #2: When You Know Your Offer Isn’t What They Wanted
Say the maximum purchase price you can afford is $300,000, but the seller has asked for $315,000. You know you’re not giving the seller everything he or she asked for, but $300,000 is the strongest offer you can give. A personalized buyer’s letter may make the seller consider your offer despite it not meeting his or her initial expectations.
A letter has the potential to take the seller out of a money-controlled mindset, and can remind him or her that there are real, live people behind the home offer.
What to Put in a Buyer’s Letter
You’re not writing a five-paragraph paper, but you should include the following:
Who You Are
Start by telling them the obvious: your name. Then, you can go into more details about yourself, such as where you’re from, who will be living with you, and what you do for a living. If you have kids or are expecting soon, say so. Really describe yourself and where you are on your life’s journey.
Why Are You in the Market to Buy
Do you need to be closer to your parents? Are you moving because of a job? Do you need more space because your family is growing? If you’re a first-time home buyer purchasing a starter home, there’s a good chance you might compete against investors. Explaining why you are in the market to buy is a great opportunity to help you stand out.
What You Love About the House
Be honest. Why do you love the house? Tell them if you love their garden or the updated kitchen. Perhaps the backyard is the perfect place for your kids. Explain why you love the house as it is. In short, compliment them and their choices.
Buying Sometimes Requires a Connection
A buyer’s letter is like to putting your picture on a resume. It makes your offer more personal and elevates it. If you’re in the market to buy, keep this strategy tucked away in your back pocket. You may need it to get that house you love.
Herring Bank has a team of expert mortgage lenders that are ready to answer any questions you have about home buying. Contact our team of mortgage experts today by calling (866) 236-4779 or by requesting a call below.