Now that the economy has started showing signs of recovery, the demand for houses in many markets is on the rise. Interestingly, prospective home buyers are trying every trick in the book to make their offers stand out. Some of them are even writing letters to sellers explaining what they love about the property and why they are the best people to buy it.
How can you beat the competition by approaching the seller through an old-fashioned letter? Here are some tips:
How to court the seller with a nice letter
We are living in the digital age. Few people write letters these days, and that is exactly what makes letters special. Though only a few people take the time to write a letter, most people would like to receive one. In the realty sector, competition for properties is pretty high. When several buyers show interest in buying the same property, a bidding war often ensues. However, lenders are unlikely to finance the purchase if they feel that the bids are too high. That is building a personal rapport with the home seller is important.
If you are trying to buy a property owned by a bank, there is little point in writing a letter. Banks are not interested in your prose. However, if you are writing to the owner of the house, letters may work wonders. Of course, you will need to possess some writing skills. However, if you are buying property through an agent, you must discuss this with them. Buyers are not supposed to contact sellers without the knowledge of their agents.
Why do letters work, anyway?
Most people have an emotional attachment to their house and they are very particular about selling the property to the right person. If you are planning to write a letter explaining why you are the right buyer you need to mention a few things. You need to clearly state what features or things you like about the property. Sincere compliments will make the seller happy. There have also been instances where the seller agreed to sell the property for a slightly lower price because they were touched by the letter. Of course, there are also some buyers who simply don’t care about letters. They will sell the property to the highest bidder.
In your letter you must also include a little information about yourselves. You could mention your and your partner’s name and if you have kids, their age and names. You must also express your commitment to the property and the willingness to do anything to buy it.
Discretely convince the buyer that you have got the required purchasing power; however making a direct reference to your bank balance isn’t recommended. The seller needs to know that you are capable of buying the house, but boasting about your creditworthiness might put them off.
Keep the letter short and simple. Also limit the number of compliments you use. If you shower too many praises the seller might arrive at the conclusion that they have underpriced the house.
So, once you have decided to pen that letter, make it good. Here is a simple word of caution. Writing a letter might help your case but don’t expect the seller to favor your bid just because you are good at writing letters. Also don’t forget that no amount of writing skills will help you close the deal, if the difference between your bid and another person’s bid is huge.