Drafting the Offer Letter

Understanding the Basics

If you are using Homa to generate a contract for you, your offer letter can be a summary in the body of the email you send to the listing agent or seller. If you are not using Homa's contract generation tool, your offer letter will be a formal document that communicates your intent to buy a property. It includes key details such as the offer price, contingencies, and the timeline for the transaction. While the structure and requirements of offer letters can vary, the following elements are generally included:

• Buyer and Seller Information: Full names and contact information.

• Property Details: Address and description of the property.

• Offer Price: The amount you are willing to pay for the home.

• Earnest Money Deposit: A deposit showing your commitment to the purchase.

• Financing Terms: Details about your mortgage and down payment.

• Contingencies: Conditions that must be met for the sale to proceed.

• Closing Date: Proposed date for the closing of the sale.

• Expiration Date: The date by which the seller must respond to the offer.

If working with Homa, these are all the same pieces of information you should include in your email to the seller or listing agent when you submit your signed contract as well. That way, you are making it is easy for them to identify the important parts of your offer.

Standardized Forms and Realtor Access

In many areas, the forms used for real estate contracts are standardized by the local or state realtor organization. These forms ensure that all necessary legal and procedural details are covered, providing protection for both buyers and sellers.

• Access to Forms: These standardized forms are typically accessible only to licensed realtors, though if you use Homa, you will have access to them, too. If you are working with a realtor or choose to have the listing agent help you, they can also handle the drafting and submission of the offer using these forms.

• DIY Approach: If you are not working with a realtor or Homa, you can draft your own offer letter, but it’s advisable to consult a real estate attorney to ensure all legal requirements are met.

Working with the Listing Agent

If you find yourself in a competitive situation, it might be worthwhile to ask the listing agent to represent you as well. Here’s how to approach this:

• Negotiating Fees: Try to negotiate a nominal fee for this service, ideally under 1% of the total purchase price or even lower, depending on how involved you’ll need the listing agent to be.

• Advantages: Having the listing agent represent you can streamline the process and potentially give you an edge in a competitive market. The listing agent might be more incentivized to close the deal quickly.

Drafting Your Offer Letter

If you need to draft your own offer letter or summary email, follow these steps to ensure it is comprehensive and compelling:

• Start with a Professional Greeting: Address the seller or their agent formally. Use full names and titles where appropriate.

• Introduce Yourself: Briefly introduce yourself and express your genuine interest in the property. Mention any personal touches that might resonate with the seller, such as why you love the home or how you envision your life there.

• State Your Offer Price: Clearly state the amount you are offering for the home. Justify your offer with market research or comparable sales if necessary.

• Outline the Earnest Money Deposit: Specify the amount of the earnest money deposit and how it will be handled (e.g., held in escrow).

• Detail Your Financing: Include information about your financing, such as the type of mortgage, down payment amount, and your pre-approval status. Include your pre-approval letter.

• List Contingencies: Include any contingencies that must be met for the sale to proceed, such as financing, inspection, and appraisal contingencies. Refer to Homa’s guides for detailed explanations of common contingencies.

• Propose a Closing Date: Suggest a closing date that works for you, but be flexible and considerate of the seller’s timeline.

• Set an Expiration Date: Specify an expiration date for your offer, encouraging the seller to respond within a reasonable timeframe.

• Conclude Professionally: Thank the seller for considering your offer and express your eagerness to proceed. Include your contact information and any necessary signatures.

Before submitting your offer letter, review it thoroughly to ensure all details are accurate and complete. When you send the email, make sure you follow up with the seller or listing agent via a call or text to make sure they've received it.