How to Write a Real Estate Offer Letter
Writing a purchase offer without a buyer's agent is straightforward. Most states use standard purchase agreement forms — here's exactly what to include.
Pro tip: The seller's listing agent can provide you with the state-standard purchase agreement form. You fill in the blanks and submit it directly. For an extra layer of protection, have a real estate attorney review it before signing.
What Every Offer Must Include
1. Purchase Price
The price you're offering for the home. Base this on your comp research — recent sales of similar homes in the area. In competitive markets, offer at or above list price. In slower markets, you may have room to negotiate.
2. Earnest Money Deposit
A good-faith deposit held in escrow — typically 1–3% of the purchase price. It shows you're serious and will be applied to your down payment at closing. You may forfeit it if you back out without a valid contingency.
3. Financing Contingency
Protects you if you can't get final mortgage approval. Typically 17–21 days. Without this, you could lose your earnest money if financing falls through.
4. Inspection Contingency
Gives you the right to have the home inspected and to renegotiate or walk away based on findings. Usually 5–10 days. Sellers in competitive markets may ask you to waive this — proceed carefully.
5. Appraisal Contingency
If the home appraises below the purchase price, this contingency lets you renegotiate or back out. Most lenders require an appraisal; this protects you if it comes in below the offer price.
6. Proposed Closing Date
Typically 30–45 days from the accepted offer. A faster closing (if you can manage it) can make your offer more attractive to sellers who want certainty.
7. Personal Property
Specify what's included or excluded: appliances, window treatments, light fixtures, outdoor furniture, storage sheds. List anything you're unsure about.
8. Closing Cost Contributions
Who pays what closing costs is negotiable. You can ask the seller to contribute a specific dollar amount toward your closing costs — common when you need to conserve cash.
9. Offer Expiration
How long the seller has to respond — typically 24–72 hours. A short window creates urgency; too short may frustrate sellers. 48 hours is a reasonable default.
Tips for Competitive Markets
- ✓Get fully pre-approved (not just pre-qualified) before making any offers.
- ✓Include an escalation clause: "Buyer offers $X, escalating in $1,000 increments above any competing offer up to $Y."
- ✓A larger earnest money deposit signals commitment and financial strength.
- ✓Offer a flexible or fast closing date — sellers often value certainty as much as price.
- ✓Limit inspection repair requests to major structural or safety issues rather than cosmetic items.
- ✓Consider waiving the appraisal contingency only if you have cash reserves to cover a low appraisal.
Should You Have an Attorney Review Your Offer?
In 18 states, an attorney is legally required at closing. Even in states that don't require one, having a real estate attorney review your purchase agreement is a smart investment for a $300K+ transaction. LegalZoom connects you with licensed real estate attorneys at a fraction of traditional law firm rates.
Review My Offer with LegalZoom →Buying Directly from the Seller (FSBO)?
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