Author:
William Ramirez
Date Of Creation:
18 September 2021
Update Date:
1 July 2024
Content
A letter of interest for a home (Letter of interest or Letter of intent) is sent in the early stages of a real estate transaction. In this letter, the potential buyer sets out his proposals to create a working basis for further negotiations with the seller. These letters are most often used when buying a home, but can also occur in the case of leasing or renting. Start with Step 1 to learn how to write a letter of intent for a home, what types of information to include (and which not to include), and how to ensure that your letter is not legally binding.
Steps
Method 1 of 1: Writing a Letter of Intent for Home
1 Address your letter to the seller using your full personal details or company name, main address, and contact information. Date {Blue Horizon Real Estate James Townsend, Realtor4857 W. Circle Dr., Parliament, NJ 24578Phone: (555) 555-0198 Email: [email protected]} 
2 Indicate in the first sentence that you (use your full name) declare that you are interested in buying, leasing or renting real estate. Include the address of the property and any details of what is expected to be included in the transaction, including furniture, land or other items. {Blue Horizon Real Estate James Townsend, Realtor4857 W. Circle Dr., Parliament, NJ 24578Phone: (555) 555-0198 Email: [email protected] To whom it may concern:} 
3 Make your offer.{Blue Horizon Real Estate James Townsend, Realtor4857 W. Circle Dr., Parliament, NJ 24578 Phone: (555) 555-0198 Email: [email protected] To whom it may concern: I, James Townsend, Realtor, am writing this letter to declare my interest to buy your property at 836 N. Four Square Dr., Umbridge, NJ 25874.} - Use the phrase "The buyer is willing to pay ..." or "The buyer's offer is as follows ..." how often you are willing to pay rent (for example, every month, every year, etc.).
4 Offer a deposit or prepayment for the property.{#txtscrl: Propose a deposit or down payment} - This will serve as a demonstration of your good faith in case the seller agrees to your offer. A typical deposit is 10 percent of the total, or two months' rent.
5 Indicate how and when you intend to pay for the purchase of the house, the cost of the lease or rent.{#txtscrl: Indicate how and when you intend to pay} - Instead of setting a specific date, use terminology such as "two weeks from the date of the agreement." Include details of the real estate brokers or agents, banks or lenders you will work with and how you plan to pay - in one large amount or in installments.
6 Suggest a short period of time during which you can inspect the property.{Blue Horizon Real Estate James Townsend, Realtor4857 W. Circle Dr., Parliament, NJ 24578 Phone: (555) 555-0198 Email: [email protected] To whom it may concern: I, James Townsend, Realtor, am writing this letter to declare my interest to buy your property at 836 N. Four Square Dr., Umbridge, NJ 25874. I am prepared to pay $ 243,500.00 for this property. Included in this purchase proposal, I am interested in purchasing the following: • The house, land, and associated property for the address given above • All furnishings and appliances associated with the property listingI propose an initial deposit of $ 25,000 as an act of good faith ... I would like to make the deposit two weeks from the time of the agreement. The buyer has received an agreement letter from New Jersey State Credit Union in order to receive the funds necessary to purchase this property. Should we reach an agreement, I will agree to pay according to the following schedule. Date: 10/1 / 2013Down Payment: $ 25,000Monthly Payment: $ 1,248Payment Term: 15 Years} - Be specific about the nature of your inspection, such as a simple visit or research on tax or other records.
7 Suggest a date on which you can sign purchase, lease, or lease documents.{Blue Horizon Real Estate James Townsend, Realtor4857 W. Circle Dr., Parliament, NJ 24578 Phone: (555) 555-0198 Email: [email protected] To whom it may concern: I, James Townsend, Realtor, am writing this letter to declare my interest to buy your property at 836 N. Four Square Dr., Umbridge, NJ 25874. I am prepared to pay $ 243,500.00 for this property. Included in this purchase proposal, I am interested in purchasing the following: • The house, land, and associated property for the address given above • All furnishings and appliances associated with the property listingI propose an initial deposit of $ 25,000 as an act of good faith ... I would like to make the deposit two weeks from the time of the agreement. The buyer has received an agreement letter from New Jersey State Credit Union in order to receive the funds necessary to purchase this property. Should we reach an agreement, I will agree to pay according to the following schedule. Date: 10/1/2013 Down Payment: $ 25,000Monthly Payment: $ 1,248Payment Term: 15 YearsI would like to visit the property between 8/5/2013 and 8/12/2013 in order to view the interior and exterior to ensure that it is in good order.} 
8 End with a paragraph stating that the letter represents intent and is not legally binding.{This letter does not bind the buyer or seller to any offer, financial or otherwise.} - Be clear that "this letter does not oblige the buyer or seller to make any offer, financial or otherwise."
- 9 Sign and date the letter.{#txtscrl: Sign and date the letter}
Tips
- When making an offer in a letter of intent, it would be wise to offer a lower price than you are willing to pay so that you can negotiate more effectively. Try to make your offer more attractive by offering better terms for the buyer, such as an increase in the down payment or a quick deal.
Warnings
- Never write a letter of intent until you have fully studied the subject. Although you should state the time frame for researching an item in your letter, it is best to have an excellent understanding of the item and its shortcomings before submitting a proposal.
What do you need
- Details of the potential property
