Writing a house offer letter, sometimes called a ‘love letter,’ can help differentiate you from other buyers in a bidding war, humanize your formal offer, and add a personal touch to a real estate transaction.
However, it’s important to be aware that a house offer letter can put the home seller in a difficult position regarding fair housing laws. Additionally, a letter may not be enough to win your dream home if other potential buyers have made a more competitive offer.
What Is a House Offer Letter?
A house offer letter is a personalized letter you can send with your formal purchase offer. When you craft an offer letter, the goal is to help differentiate your offer so you can stand out among potential buyers. If multiple buyers are bidding on a home you’re interested in, a house offer letter could be the missing piece that makes a difference and lands you the home.
Offer letters can help frame you as the best buyer for a particular property, whether that’s because you have a large down payment, a significant earnest money deposit or some other differentiating factor. They can also help find common ground between you and the seller.
Unlike a purchase contract, a home offer letter isn’t legally binding.
Is a House Offer Letter a Good Idea?
Before you start writing, consider whether a house offer letter is the right move.
“Buyers should never ask their agent to submit a personal offer letter to the sellers,” warns Robert Washington, founder and broker at Savvy Buyers Realty, a flat-fee agency. “They can be considered a violation of the Fair Housing Act and can create legal liability for the agent and their broker.”
That’s because an offer letter could include personal information. In a worst-case scenario, these details could open the door to potential housing discrimination issues, including discrimination based on race, color, religion, sex, disability, familial status or national origin.
The National Association of Realtors warns its members of the problems that a buyer’s “love letter” can cause, stating that “even if it is unintentional, buyer love letters introduced into the transaction put the seller at risk of violating fair housing laws should they decide to accept or reject an offer based on information related to these protected classes.”
Because of these fair housing concerns, some brokers instruct their real estate agents to avoid opening or sharing offer letters from potential buyers.
Before you write a letter, consult your agent to determine that doing so will strengthen your offer. If you decide that a letter will support your bid to buy a home, ensure that it is written in a way that will not put the seller at risk.
How to Write an Offer Letter for a House
If you’ve decided that a house offer letter is right for your situation, here’s how to go about it:
- Introduce yourself
- Express your love for the home
- Show your financial strength
- Be flexible
- Create an emotional connection
- Close the deal
Keep your letter short – no more than a typed or handwritten page. Avoid including a photo for the fair housing reasons mentioned above. Most importantly, remember that many other factors go into making an attractive offer on a house, so if a letter isn’t right for you, don’t sweat it.
1. Introduce Yourself
First things first: Greet the seller by name, then introduce yourself. This is your first impression, so make it a good one by being respectful.
Avoid sharing unnecessary personal details that could potentially raise fair housing concerns. Instead, focus on the seller and how you might be able to connect with them. For example, you might mention:
- Career
- Hobbies
- Education
- Sports team
Avoid mentioning holidays, cultural traditions, or other details that could lead to bias (whether intentional or not). You’ll want to take the time to set the scene of your story and why you’re the right buyer for this home.
2. Express Your Love for the Home
Highlight specific features you admire and how this house stands out for you. Be authentic in your enthusiasm. For example, don’t go on and on about an architectural detail if you don’t actually care about it because that will come through in the letter. It’s OK to flatter the seller’s taste as long as you’re being honest about your opinion.
For instance, what caught your eye about this home?
- Garden and landscaping
- Unusual or luxurious amenities
- Exterior color and style
- Vintage or period details
- How well it’s been maintained
- Tasteful improvements or updates
- Proximity to attractions, like the beach or a national park
Chances are, the seller is proud of the features that drew your attention; let them know they have good reason to be proud! Share your vision for how you would appreciate those features as the new owner, too.
3. Show Financial Strength
Although many consider a house offer letter a “love letter” to the seller, it also means business. You want to ensure the seller knows you’ve explored the financial considerations and have the finances to back up your offer to purchase the home.
If you’re making a cash offer, mentioning this can be a significant advantage. Sellers often consider a cash sale to be fast, simple and hassle-free.
If you have been preapproved for a mortgage, let the seller know. While you don’t need to disclose the exact pre-approved amount, emphasize your financial readiness and the lender’s confidence in your ability to meet monthly payments.
Mention the down payment you plan to make, too. Sometimes, a bigger down payment can mean a big difference in winning the home. Tell them the earnest money you plan to deposit as well. A higher earnest money amount could make your offer more competitive, so note that in your letter.
If your offer is on the low side, but you have a reason for that, an offer letter could be your chance to explain your reasoning to the seller. Maybe the home needs renovations, and you want to ensure that you have enough cash left to cover them. If the home does need improvements, there’s a chance the seller is already aware. Your real estate agent can guide you through what to include in your offer letter, and why.
You can attach the mortgage lender’s pre-approval letter, too.
4. Be Flexible
Briefly mention your approach to contingencies. If you’re willing to be flexible or even waive inspections or repairs, or if you’d like an inspection for information only, include those details. Being more accommodating to the seller’s needs may help you win out over other bids.
Remember that while waiving inspections could win you the home, an inspection also provides you with valuable information. If you need to include contingencies in your offer to protect yourself, mention those as well. It’s best to be forthcoming so the seller has the information they need to make an informed decision.
Other ways you may be able to show your flexibility include being open to a closing date at the seller’s convenience, or by offering a rent-back opportunity if they need more time to move.
5. Create an Emotional Connection
Share a genuine reason why this house feels like the perfect fit.
“Understanding what is important to the seller can help make an emotional appeal and win them over in a competitive situation,” says Maureen McDermut, a real estate agent based in Montecito, California. She relates an example from her experience:
“Some years ago, there was a home that my clients were very interested in because of the proximity to the ocean,” McDermut says. “My clients had two younger children who both wanted to learn to surf. The seller of the property actually had a son who loved surfing, and when they wrote their letter, they expressed how excited they were to be able to take their children to the beach in order to surf. The seller was so excited that their home was going to be used by a family with a common passion that their offer was accepted.”
6. Close the Deal
Finally, it’s time to close your letter in the hopes that it will also close the deal. Thank the seller for their time and consideration, and reiterate your enthusiasm for the home and the opportunity.
Pro Tips for House Offer Letters
In addition to working closely with your real estate agent, here are some tips to help ensure your offer letter is warmly received.
- Keep it concise: It’s better to be too short than too long, which could turn off the seller or discourage them from reading all the way through.
- Proofread carefully: Have your agent and/or a trusted friend read it over and correct any spelling or punctuation errors.
- Professional presentation: Make a good impression by taking the time to present the letter well. Format it like you would a business letter.
- Honesty is key: Just as you would want the seller to be honest with you, you should be honest with the seller. A lie could come back to haunt you later.
Sample House Offer Letter
Below is a house offer letter template to help give you an idea of how to structure yours.
[Date]
[Seller Name]
[Seller Address]
Dear [Seller],
Thank you for letting me visit your home for sale on [Street Name]. As a newcomer to the area, I’ve been looking for the perfect cottage-style home near the lake and have finally found it with your house.
The updated kitchen and original hardwood floors are some of my favorite features, as is the way sunlight streams through the windows.
I’ve been pre-approved for a mortgage on this home with a down payment of [amount] and would like to offer a [%] earnest money deposit of [amount]. See the attached mortgage preapproval for further details.
If my offer is accepted, I’m happy to close whenever is convenient for you, and I look forward to taking care of and maintaining this gorgeous home.
Thanks for your time and consideration,
[Your Name]
The Bottom Line on House Offer Letters
A well-crafted house offer letter could be a component of your homebuying strategy, but writing one isn’t without risk. Remember that not all listing agents will open or share an offer letter in order to mitigate fair housing concerns.
If you and your real estate agent determine that a house offer letter is the right move for winning your next home, create a warm, bias-free letter that won’t put the seller or their broker at risk of a fair housing complaint. Focus on connecting with the seller and reassuring them that you’re the best buyer for the deal.
House Offer Letter FAQs
A house offer letter is a personalized note designed to accompany a formal purchase offer. House offer letters can create a personal connection with the seller, which might be a factor that strengthens your bid to buy a home.
Although some sellers may enjoy hearing from buyers directly, it’s important to understand that other sellers simply want to see the best offer. If you write a letter to the seller, you must avoid any details that could be the basis of discrimination, such as references to race, color, religion, or national origin.
You can write a letter to go with your house offer, but some listing agents will not open or share them due to fair housing concerns. It’s wise to discuss an offer letter with your real estate agent; they may have tips, experience, or other information that can help you determine if an offer letter will strengthen your bid.
Mary Beth Eastman is a freelance writer and authority on mortgages, real estate, home buying and other personal finance topics. She holds a bachelor's degree in Journalism from Bowling Green State University, and her work has appeared in major national brands including U.S. News and World Report, CNN, Newsweek, Wall Street Journal and Fox Money.
