It is an incredibly competitive market these days, which often leads to the dreaded bidding war. In Seattle alone, more than 77% of offers on home faced competing offers. Unfortunately, it is becoming more of a reality that you aren’t always going to be the highest bidder, especially when more and more people are prepared to offer all cash.
So what can be done to keep pace with the fast-paced, high-price market? Aside from having a confident real estate agent help you find the perfect home and negotiate an offer, there are other ways to secure the home of your dreams when you can’t shell out any extra money. Perhaps the best option is to write a sincere offer letter. An offer letter gives the buyer the chance to connect with the seller, usually on a personal level. It explains why you want to live in their home and why they should choose you.
A well-written, genuine offer letter can even beat out a higher price offer. People often have personal attachment and connections with their home and would rather see it go to someone that will appreciate it over someone that can pay more for it.
Here are some tips to help you write a strong offer letter:
1. Set your letter apart
While offer letters are becoming more and more commonplace, people still appreciate a well-designed letter. Compare it to your resume or cover letter when applying for a job. You want it to stand out from the crowd, but for positive reasons such design and format. Need help? Check out this example.
2. Say what you love
Rather than simply stating what you love about the home, explain why you love it. Does it have the perfect kitchen for all your family holiday meals? Or maybe it’s the amazing backyard that your children would love to play in. Whatever it is, be sure to tell the seller exactly what AND why you love their home.
3. Make a connection
Did you and the seller have a great conversation about your shared love of the Seahawks? Or maybe you both went to the same college and were able to reminisce about the old days. Mention the shared personal connection in your cover letter to not only remind the seller of who you are, but to set yourself apart from others. It’s an easy way to relate to the seller, plus it will prove that you aren’t just sending the same, boilerplate letter to every seller.
4. Be brief
Realistically, your letter will not be the only one the seller has to read. If you’re in a bidding war, there may be multiple offers and letters for the seller to sort through. Be concise. Say exactly what you want to say without going into too much unnecessary detail as you run the risk of boring or frustrating the reader.
5. Leave a hardcopy with the sellers
How many emails do you get per day? 10? 50? Now consider how many heartfelt tangible letters you receive. Taking the time to not only write, but print and drop off the letter proves that you are truly invested in the process and are willing to go the extra mile. As an added bonus, you could even consider handwriting the letter to really prove your interest.
Why leave it with the seller rather than send it in the mail? You significantly increase your chances of the letter getting lost or perceived as junk mail. Instead, consider leaving the letter after your showing, but only if you know that there are no additional showings that day as the next agent could remove the letter to better their own client’s chances.
As you can see, a sincere letter can set you apart from the rest of the overzealous buyers and help you secure the perfect home, and ideally at the perfect price.
Need more advice on offer letters? Give me a call at 206.953.8311 anytime and I would be happy to walk you through the best practices.
