It’s one thing to go and bat for a home you fancy; it’s another to set your sights on California property. Buying a home in California can be extremely competitive as the demand is high and the inventory is relatively low. Thus, the moment you find that available property for sale, you have to make sure you make an offer the home seller can barely resist. And it all starts with putting your real estate offer to purchase into writing.
Preparation and research are the keys to making an effective offer to purchase. First, you have to know how much house you can afford prior to writing your offer to purchase to ensure that you’ll have an authentic and convincing presentation.
Once you hunker down and start typing on your computer keys to compose your letter, keep the following tips in mind:
Be accurate with every piece of info
The goal of an offer-to-purchase letter is to help the home buyer and seller arrive at a mutual agreement so that the purchase process can begin. The letter must have the information stated below:
- The type of property
- The property’s exact address
- Identification of the parties involved
- The price of the property
- The down payment amount, along with any milestone payments
- The terms and time frame of the deal
- Closing date and costs
- Real estate taxes and special assessments
- Date of acceptance and offer expiration
As you can see, an offer-to-purchase letter requires a lot of accurate and detailed information, not to mention it needs to be carefully worded in an easy to understand and diplomatic manner. You’ll also have to recheck and rewrite your letter a few times to have a presentable and professional document that will stand out in the eyes of the home seller. If a good real estate agent has your back, they can guide you with the tone and the information to share in your letter to ensure you have all details written down in the most tactful way possible.
Be personal and personable
Make your opening statement as friendly and heartfelt as possible. Formally introduce yourself, share a bit about your hobbies and interests, and explain why you think the owner should choose you as the property buyer. Many homeowners feel an emotional attachment with their property and want to make sure they are passing it to someone who will genuinely care for it as much as—if not better than—they do. Find a way to connect with the buyer, like mentioning something you noticed during the home viewing that you can relate to.
Weave in some flattery
A little sweet talk goes a long way, and it wouldn’t hurt to mention features you appreciated about the home. Comparing the home to other properties you’ve seen can be a powerful way to “flatter” the homeowner, so to speak. You can say, “It’s the most well-maintained home I’ve ever looked at,” or “The layout is more well-thought-out than my previous first choice.” Of course, you should only write complimenting statements that you truly believe yourself.
Explain your bid
After the niceties, it’s time to get down to business. In offering your bid, be sure to accompany it with a polite and respectful explanation. Unless you’re paying for the whole amount, your bid will likely be lower than the advertised price – perhaps significantly so. Expertly justify your bidding price to the owner in a way that’s firm but not insulting.
Identify who’s responsible for the fees
Aside from identifying all the fees in your offer to purchase, you also need to be clear about who’s supposed to pay for them. Fees are often negotiable, and some are customarily paid by either the buyer or the seller. But instead of assuming, it’s safer to be clear about what fees get to be paid by whom. Have your list of fees checked by your real estate agent to ensure you are listing these fairly and correctly.
End with thanks
Your closing may not seem important, but it helps to complete a well-written offer. Although you can carry a casual tone in your letter, a real estate offer to purchase is still, first and foremost, a business letter. Thus, whether it’s a simple “thank you” or a more formal “thank you for your consideration,” you should always be polite and appropriate with your closing.
Need help in crafting your real estate offer to purchase? Even if you’re just shopping for a California home to buy, it’s in your best interest to talk to experienced real estate agents in California like Stephen Haw. They can offer you valuable information and insights into the buying process. To get started, call The Stephen Haw Group today at 310.503.9886 or send a message here.