Offer Letter Template to Buy Rental Property Faster [+Free Sample]

An offer letter to purchase a property can make all the difference. Find out how to craft a compelling letter to the home seller and increase your chances of closing the deal more quickly.

Offer Letter Template to Buy Rental Property Faster Free Sample

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Even if you are a good writer, drafting a sample real estate offer letter to purchase a property to be used for vacation rentals is easier said than done. What makes writing offer letters challenging is that you want your offer to get noticed, but not come across as desperate.

To help you improve your chances, here are the personal details that you should include and other key takeaways for writing an offer letter. We’ve even designed a sample offer letter to purchase property for you to get started!

What Is an Offer Letter to Buy Property?

A sample real estate offer letter to buy a property is a professional letter that a prospective buyer writes to the sellers to communicate their intention to purchase the specific property.

Buyers can use it to explain to the seller why they are the best option as a buyer. Basically, you can think of it kind of as a cover letter that you include when you apply for a job opening.

Is a Real Estate Offer Letter Necessary?

While this type of letter is not compulsory, it is strongly recommended that you do this extra step and include it along with your offer.

It might come as a surprise to you, but even if you have made the highest offer, it doesn’t guarantee your offer will automatically be successful. There are other factors that the seller might also keep in mind when evaluating the multiple offers that they have received.

Here are three ways an offer letter template can help you:

1. Shows you mean business

Properties in competitive markets will most likely attract a great number of offers. This can make it difficult for the current owner to consider all the offers equally.

If an offer comes without a letter, it could just be that it gets thrown out immediately because the seller might not think that you are really a serious buyer.

2. Establishes a personal connection

While it is only a business transaction, the truth is that the seller might feel emotional about selling the property. This is understandable. Many memories are created in our homes. It could be the place where they started a family or enjoyed retirement.

By taking the time to write a letter, you can create a personal connection with the seller and show that, as the next owner, you will continue to take good care of it.

3. Shows you are organized

No one likes a drawn-out process, especially not when their financial situation means that they need to sell the property quickly.

A real estate offer letter can help to show that you have all your ducks in a row and that the sale will most likely continue without any problems.

How to Structure Your Real Estate Offer Letter to Purchase Property

As mentioned earlier, writing a real estate offer letter is optional. It is neither a legal document nor is it compulsory, which means that there are no strict rules that you need to follow.

That said, there is a format to writing real estate offer letters that can help ensure that you remember to include all the critical information.

Sticking to the following format will also help you strike the right tone, which is one of the biggest challenges. Include these things in your real estate offer letter:

1. Address the Seller

To ensure that you successfully establish a personal connection with the seller in your offer letter, which can help you in your efforts, it is a good idea to include their title and surname in the salutation (instead of simply writing “Dear Seller”).

Dear [Seller's Name],

I’m writing this offer to express my sincere interest in purchasing the property at [Property Address].

2. Confirm the details of the property

It could be that the seller currently has more than one property listed. To avoid any confusion, remember to include the details of the property you would like to purchase. This includes the property address.

[Property Address]

3. State the amount of your purchase offer

It is critical that you have important details, like your purchase offer price, in writing. So, be sure to include this amount again in the letter. To keep it simple, you can omit extra fees, like taxes.

I am offering [$Amount] for the purchase of your property.

4. Briefly describe your payment plan

Describing your payment plan not only helps to show the seller that you are indeed serious, but it can also offer you some extra protection by ensuring that everyone is on the same page and that no expectations have been created.

Include essential personal details, but be selective; you do not need to include in-depth details if they are not requested.

I am offering [$Amount] for your property, with 20% to be paid as a down payment. The remaining balance will be financed through a conventional mortgage loan from [Lender Name]. I have already received pre-approval for the loan.

5. Establish a personal connection by describing yourself and what attracted you to the property

Share a couple of relevant details about yourself. You can, for example, mention which features attracted you to this particular property and the surrounding neighborhood.

To help you connect with the seller on a more personal level, pay attention to the furnishings when you view the property. For example, if it has a study with an impressive book collection, you can mention that you look forward to having a space for a reading nook.

Needless to say, focus on the positive aspects only. If you are looking for a fixer-upper so that you can save some money, this is not the time to mention it.

As someone who loves spending time outdoors, I was immediately drawn to the beautiful backyard and the peaceful neighborhood. The proximity to local parks and walking trails is exactly what I’ve been looking for. The warmth of the space truly feels like the right fit for me and my family.

6. Conditionality or exclusivity clauses

There might be a few conditions that you will want to include. Perhaps you want to get an independent appraisal first or hire a professional company to complete a home inspection on a specific date. There is nothing wrong with including this in your letter.

This offer is contingent upon a standard home inspection and an independent appraisal to confirm the property’s value. I’m happy to coordinate these quickly to keep the process moving smoothly.

7. Add a date of validity

Time is money, especially in the rental estate business. It is a good idea to include until when your offer will be valid. This will typically be about two weeks.

Your goal is not to pressure the seller, but rather to ensure that you do not waste time on this deal, while other potential properties get scooped up. Including a desired closing date will help the property owners work to a deadline and might even help your offer letter stand out with a personal touch.

This offer is valid until [Date], as I would appreciate a timely response. I am targeting a closing date of [Desired Closing Date], and I hope to proceed on that timeline.

What to NEVER include in Your Real Estate Offer Letter

Including too much personal information can hurt your application. The following are some things that are best left unsaid in today’s real estate market.

1. Information that’s too personal or not relevant

When writing these types of letters, it is best practice to leave out your race, religion, and gender. Depending on the location, there might be laws in place that prohibit sellers and real estate agents from considering these personal details.

2. A detailed explanation of your financial status

The seller does not need to know how many other fixed assets you have or that you like spending a small fortune on shoes every month. The only financial information that matters is your offer price and your payment plan. You should not include any further financial details.

3. Sob stories, aggressive or overly persuasive language, or desperate pleas

While you want to communicate that you like the property and neighborhood, you should not come across as too invested. This is one of the most common mistakes that interested buyers make.

Just like you want to pay as little as possible, the seller wants to get as much as possible. If you create the impression that you will basically do anything to buy this perfect property, the seller might interpret it as you are willing to spend more than initially offered or even the asking price.

4. Pointing out what you don’t like about the property

As mentioned earlier, the seller very likely has some sort of personal connection and emotional attachment with the property. Even though they have placed it on the market, it does not mean that they no longer like it.

The sale may be a result of a compromised financial situation and thus a necessary real estate transaction for them. If you point out features that you dislike about the property, they can take it personally and even feel offended. Keep your renovation plans to yourself, even if you are a real estate investor.

Free Sample Offer Letter to Purchase Property

To help simplify real estate investing, here is a free real estate offer letter template that you can use to make sure your offer stands a better chance of being accepted:

[Insert your name and address]

[Insert the seller’s address]

[Date]

Dear [Insert the title and name of the seller]

[Write a short introduction about yourself and the reason for wanting to buy this property.] (“I’m interested in the property located at ___”).

[Write about what attracts you to this property. Try to relate to the seller, but without coming across as insincere or desperate.]

[Refer to the financial details. While these details will be repeated in the purchase agreement again, it’s a good idea to include details about the down payment, closing date, etc., in your offer letter too.]

[Summarize why you are interested in this specific property and how it will help your real estate business.]

Kind regards

[Your name and surname]

Do I Have to Send The Real Estate Offer Letter to the Real Estate Agent?

You can let your offer stand on its own feet with the property owner alone. It is not a must to send it to the real estate agent, too.

However, while you do not need to send the offer letter to the agent, it can be a good idea to get their input. They have years of experience concerning the negotiation process and valuable interpersonal skills.

Do I Need to Change My Letter If I’m Sending It To Real-Estate Agents?

In short, no, you don’t. It’s best practice to send your offer to purchase to both the property owner/owners and their selected real estate agent or agency. Even if it’s just for record purposes, send your letter to all parties involved in the transaction.

Manage Your Rental Property Effortlessly with iGMS

In addition to a real estate offer letter, many other useful tools can help you when you are starting a real estate business.

Investing in a vacation rental software solution is also a good idea to help you save time and resources. You can, for example, try out the powerful features offered by iGMS.

In Conclusion

Drafting an offer letter from an offer letter template is so much easier than drafting one from scratch. As stated above, include a small personal note, but not too much personal information.

Express interest as the potential buyer, and include the purchase price you’re offering. Don’t include unnecessary financial information in your property offer letter. You’ll also need to include some logistical information.

Use our free template above and you’ll be well on your way to property ownership!

About the Author
Callan Riddles is a former Content and Social Media Specialist at iGMS. Callan has a passion for finding new ways to help vacation rental businesses thrive. In her free time, she loves to travel, read, and experience all the new things that life has to offer.