The family was asleep and unharmed in attack, said police spokeswoman Luba Samri, adding that an investigation was underway.
Jewish extremists have for years vandalized or set fire to Palestinian property, as well as mosques, churches, the offices of dovish Israeli groups and even Israeli military bases.
The so-called "price tag" attacks seek to exact a cost for Israeli steps seen as favoring the Palestinians.
"There is Arab terrorism that we deal with and combat day and night in every arena, but unfortunately from time to time there are also acts of terror committed by Jews," Netanyahu said today. "We will not accept terror from any side."
Also Read
Today attack in a village near Ramallah comes as Israel says it has made significant progress in the investigation of the most notorious of these attacks, a July firebombing that killed a Palestinian toddler and his parents in the village of Duma.
In recent weeks, anger has been rising among far-right activists who object to the arrests and interrogation of the suspected attackers.
Some have claimed that Israel's Shin Bet security service has tortured them to exact a confession for an attack that was deeply embarrassing for Israel.
In today's attack, in addition to the word "revenge," the graffiti also included the words "regards from the detainees of Zion", a possible reference to those who have been arrested as suspects.
"We have to employ the firmest hand possible in order to prevent the next Duma," the village where the July attack happened, he said.
Bennett also added that the "Shin Bet protects us every day from the Palestinians, and we have to rely on the same Shin Bet now.