In the world of real estate, buyers are always looking for ways to make their offers stand out in a crowded market. The love letter is a popular strategy that has gained momentum in recent years.
But what exactly is a real estate love letter, how does it work, and what are some helpful tips for sending one? Find out all that in this article, along with the potential pitfalls of using a love letter and how to avoid Fair Housing Act violations.
What are real estate love letters?
They are letters written by a homebuyer to the seller or agent expressing their love for the property and explaining why they would be the perfect buyers. It’s a way to appeal to the seller’s emotions and persuade them to accept the buyer’s offer over other offers. Love letters typically include personal details about the buyer, such as their family situation, hobbies, and reasons for wanting to buy the property.
How do they work?
The letter aims to establish an emotional connection between the buyer and the seller. By sharing personal details about themselves, buyers hope to bond with the seller and make them feel more comfortable selling their beloved home to someone who will cherish it as much as they have. The letter can be especially effective if the seller has lived in the house for a long time and is emotionally attached to it.
Tips for sending a love letter
If you’re considering sending a real estate letter, here are some tips to remember.
Be sincere: Don’t try to manufacture a connection with the seller by making things up or exaggerating your feelings for the property. Be genuine and honest in your letter.
Keep it concise: Your letter should be one page at maximum. The seller doesn’t want to read a lengthy essay about your life story.
Highlight your strengths: Explain why you’re the perfect buyer for the property. Emphasize any financial advantages you have, such as the ability to make an all-cash offer or the fact that you’ve already been pre-approved for a mortgage.
Share personal details: Share information about yourself and your family that will help the seller connect with you on a personal level. Talk about your interests, your career, and your family situation.
Fair Housing Act violations
While a real estate love letter can effectively win over a seller, they can also lead to violations of the Fair Housing Act if not executed properly. The Act prohibits housing discrimination based on race, color, nationality, religion, sex, familial status, or disability. It could be seen as discriminatory if it includes information that reveals one of these protected classes. For example, a note mentioning the buyer’s religion could be seen as discriminating against someone who practices a different religion. If a letter describes the buyer’s family situation, it could be seen as discriminating against someone who doesn’t have children.
Some real estate agents recommend that buyers not send love letters to avoid Fair Housing Act violations. Others suggest that buyers keep their notes focused on their qualifications as a buyer rather than personal details that could reveal their protected class status. Talking to your real estate agents before sending one would be best.
A real estate love letter can be a powerful tool for buyers looking to stand out in a competitive market. By sharing personal details about themselves, buyers hope to establish an emotional connection with the seller and persuade them to accept their offer.