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The Stigma of Offer Letters: Then and Now
It’s totally natural to want to share your excitement when you find the home—many buyers love the idea of writing a personal letter to the seller to help their offer stand out. A thoughtful note can feel like a nice way to connect, especially when you’ve pictured your life unfolding in that space.
That said, there’s been a shift in how offer letters are used. Because of Fair Housing laws, which are designed to keep the homebuying process fair for everyone, some personal details (like family background, religion, or even a photo) could unintentionally cross into sensitive territory.
But don’t worry—this doesn’t mean you can’t express your enthusiasm! If you’re thinking about writing a letter, your real estate agent can help guide you on how to keep it positive, appropriate, and focused on what you love about the home—not personal characteristics.
With the right approach, a short, thoughtful note may still add a nice human touch to your offer.
How to Write an Offer Letter
Buying your dream home isn’t just a matter of finding it and moving in the next day. If only it was that easy! Even when you’ve rounded up all the necessary documents and obtained your pre-approval letter, your offer still needs to be accepted by the seller.
Though it’s not required, you can write an offer letter.
Depending on where you live, the competition might not be so fierce. However, if you’re in a seller’s market, getting your offer accepted can be a stressful game as sellers have more bargaining power. Thus, the offer you make on a home will most likely be one out of many.
The reality of this can be discouraging, yet you can still have a chance. How do you make yourself stand out from the rest? Dive into our dos and don’ts of writing a winning offer letter that will get you one step closer to purchasing your dream home.
Should You Write an Offer Letter?
Wondering what an offer letter for a house is and whether you should write one?
Writing an offer letter is not required, but in highly competitive seller’s markets, where multiple offers are the norm, some buyers choose to write one in the hope of standing out.
Before you do, it’s important to understand both the potential benefits and legal risks involved. Always consult your real estate agent to determine if submitting an offer letter is allowed in your area and aligned with your brokerage’s policy. If so, your letter must steer clear of any personal information that could lead to Fair Housing Act violations.
Here’s how to write an offer letter for a house that is compelling, respectful, and compliant.
Offer Letter Best Practices
If you and your agent decide it’s appropriate to send one, here’s how to write a home offer letter that strikes the right balance between personal and professional:
- Be Genuine and Positive
Start your letter with a warm tone. Express appreciation for the opportunity and highlight what you love about the home. Avoid sounding overly formal or transactional, let your personality come through without being overly emotional. When speaking casually and from the heart, your words will come off as humanizing and give sellers a chance to visualize what kind of person you are and if your personality fits the home you desire.
- Focus On the Home
What factors of the home drove you to make an offer? Was it space? Location? Style? Or maybe a little bit of each? Let the sellers know your favorite attributes of the house. Instead of briefly mentioning the spacious backyard, tie in a connection and explain that it is the ideal capacity for your growing family and two dogs. By providing reasons why certain areas of their home stood out to you, sellers will address that your situation is more appropriate for their large backyard than for a single potential buyer.
- Keep It Professional
While it’s okay to show some personality, remember to keep your letter concise and professional. One page is ideal. You want to make a positive impression, not overwhelm the seller with too much information
What to Avoid in an Offer Letter
While it’s okay to show some personality, remember to keep your letter concise and professional. One page is ideal. You want to make a positive impression, not overwhelm the seller with too much information
- Avoid Using Competitive Language
Although making an offer on a home is competitive, try not to leverage an aggressive tone that can place you in an unfavorable position. Show the seller your passion and love for their home but be careful not to cross any lines that reveal your negative side. This could be in the form of stating your family is better than other families or that you have the best financial situation. It could make or break your offer, which is why you should avoid the language altogether.
- Don’t Use the Letter to Negotiate or Ask Questions
An offer letter is not the place to ask questions or bring up contingencies—those should always be handled through your agent and formal negotiation channels. Ideally, any important questions about the home should be addressed during your tour or inspection period. By the time you’re ready to submit an offer, you should feel confident and well-informed about the property. Including questions in your letter may signal hesitation or lack of preparation, which could weaken your position in the seller’s eyes.
- Don’t Over-Explain or Apologize for Your Offer
Avoid justifying or apologizing for your offer amount in the letter. Over-explaining can come across as uncertain or weaken your negotiating position. If there’s important context behind your bid such as market comps or needed repairs, let your agent handle those details during formal negotiations. Keep your letter focused on your enthusiasm for the home, not your limitations.
Offer Letter Grey Areas: The ”Maybes”
Depending on your market and agent’s advice, there are a couple of optional elements you might consider:
- Include a Photo
Although adding a family photo used to be common, it’s now considered risky due to Fair Housing concerns. If you’re considering this, consult your real estate agent first.
- Explain Your Bid
Explaining your offer isn’t necessary, though we’ve seen it a few times. It all comes down to a case-by-case basis. For example, if a comparison of your offer and the listing price is substantially mismatched, a brief, factual explanation may help. For example, “We’ve based our offer on recent comparable sales in the area.”
Get to Writing!
Keep in mind that there’s no real guarantee to get your offer accepted. If offer letters are allowed in your area and crafted carefully, it can still offer a small personal touch to a very financial-driven process. Remember to always speak with your real estate agent before submitting an offer letter.
If you need assistance in finding the right loan program for your potential dream home, contact us and we’ll be more than happy to assist you. Good luck and happy home searching!
