What to Know About Writing a Home Purchase Offer

Posted by Justin Havre on Wednesday, February 20th, 2019 at 7:26am.

How to Write a Home Purchase OfferReal estate is a business but there are people behind the buying and selling of a house. There's a human factor involved that isn't addressed often enough and you can use this to your advantage. Instead of putting in an offer that comes from a stranger, you can personalize your offer with a letter. But on top of that, there are a lot of legal requirements that may baffle prospective home buyers. Here’s what you need to know when you write a home purchase offer.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

How to Write a Compelling Purchase Offer

You can explain who you are in it and why you want the house so much. A handwritten letter may help you secure the house of your dreams if there are 2 identical offers that have been put on the table. Sometimes this can even give you an extra edge if your offer isn't as good as another one but your letter impinges upon the seller.

Why You Love The House

One thing that you should keep in mind is that a seller has built up a lot of memories in the house and may be having a hard time parting with it. Usually there are at least some great memories that the seller will be leaving behind and it will make him feel better knowing that he is selling his house to somebody that will absolutely love it.

In your letter you should describe who you are, a bit about your family situation and the special features that made you fall in love with the home. Tell the seller a bit about your future plans for the house and how you intend to take special care of it. You shouldn't lie or make things up when you're writing the letter since you’ll want to be saying things that come from your heart. When you do it this way, the letter doesn't appear to be fake and you certainly don't want to secure a home based upon a falsehood.

Make It Personalized

You don't want this letter to be cold. Personalize it with some of your style and personality. You may also want to consider attaching a picture of yourself or a family picture to it. Make yourself real to the seller so that there may be some type of bonding that occurs when he reads it. You never know what can come from a letter you write when you are truthful and state why you love the house so much.

A letter like this should never be submitted without letting your real estate agent know first. There should always be open communication between you and your agent and sometimes he may advise against including a letter for one reason or another. In most cases though, you don't have anything to lose by addressing the seller through your heart.

Is the Offer I Present Written in Stone or Can It Be Revoked?

If you're planning on making an offer for a home be sure about it first. In most cases an offer cannot be revoked and is set in stone. Too many people put in an offer thinking that they'll think about things and make a final decision later but this is never a good idea. The offer you make should never be taken lightly since it is irrevocable until its expiry date, its acceptance or rejection.

If you look at the OREA form for making an offer it is a document that cannot be revoked. It is a legal contract with a seal without consideration containing an irrevocable provision. The offer stands as it is until it is either rejected, expires or is accepted. If it is accepted the property is yours.

The only way that an offer can be withdrawn is if there is a unilateral mistake on it. An example of this would be an offer put in for $3 million instead of $300,000. If the asking price for the home was $325,000, it is clear that an error was made on the document. Without this type of mistake appearing on the offer it cannot be revoked.

If you're not quite sure about a property that you're viewing don't put in an offer. It's as simple as that. You should never attempt to purchase real estate that you don't absolutely love anyway. When you find a home that you want to move into you'll know with full certainty that an offer should be made.

This, however, is not to be confused with fear. It is natural to be afraid to make an offer even when you're sure that you want the property. You'll know deep down that you want the home but it still seems threatening to actually put pen to paper and make that type of commitment. This is natural and normal.

If you ever find yourself hesitating about a property because you still have some doubt resting on your shoulders, put away the papers and don't sign them. Once the offer is signed and submitted you don't have a legal way out unless an obvious error appears on the document.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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