If you have been following the housing market across Puget Sound, we are often in a competitive-bidding environment for homes. Buyers can be frustrated when being beat out by others who submit a similar offer.
How does a buyer stand out from the pack when competing for so few homes on the market?
Buyers, seeking any competitive advantage, are apt to hand-write a personal message to sellers in hopes of connecting on a different level. In the spirit of Valentine’s Day, welcome to residential real estate’s equivalent of the “love letter.”
It’s not uncommon for buyers to want to include these messages with formal offers in hopes sellers will select their bids over others. A buyer does not violate Fair Housing laws by writing a letter and a buyer’s broker doesn’t violate laws by delivering one.
Most importantly, the listing agent does not have authority to withhold a letter from a seller. Washington state law mandates that every broker present all offers and other written communications to or from either party in a timely matter.
[The Love Letter Goes Virtual – But Is That a Good Think for Real Estate? – July 27, 2021]
The letter typically comes from the heart. It’s in the buyers’ voice and explains to sellers why the home spoke to them emotionally. Maybe it was the floor plan or the stunning views. Or maybe it was the backyard or proximity to the park or school. The message is complimentary and positive.
Some buyers are quite open, explaining that they have plans to start a family and love how the sellers’ property was home to now-grown children who went to the public schools that the new buyers wish to have their kids attend. It’s all about making a connection with the sellers.
When walking through the home, buyers sometimes notice interesting touches to the place – paint color, choice of flooring or even a selection of collectibles on a shelf that they admire (or possibly also collect). Sharing a buyers’ interests in something (or some things) around the home could be a difference-maker – as long as it’s not too personal or impinging on the sellers’ privacy.
Sure, the highest-priced offer with the cleanest terms will likely win out in many cases. But sellers are often curious about who is buying their home and when two (or more) offers are quite similar, a personal letter may help bridge a connection with sellers to seal the deal.
The other advantage in writing a letter could be for a buyer to explain their connection to Seattle or to a particular employer. To say that you have worked 15 years for, say, Microsoft may give sellers more confidence that the buyer will have a successful closing.
Some buyers even go as far as including a family photo with the letter. While I’m reluctant to endorse that level of openness, it has been known to work for buyers in a competitive-offer situation.
An offer with more than just forms, numbers and signatures is another step to potentially getting the home of your dreams. Here’s an example of a nice opening (courtesy realtor.com):
“After seeing a number of properties that have not ‘spoken’ to us in a significant way, we were delighted to discover your home, with its mixture of charm and warmth. We envision family gatherings within its open living area and drinking coffee while watching our children play in the pool.”
OR
“My husband and I have been searching for our first home, and we believe your house will be the perfect place to raise our growing family. Our son is due in September, and I know he will be so happy playing in the fabulous backyard with our two dogs.”
When representing buyers, I would suggest they consider writing a letter but never put them in an uncomfortable position of having them actually put pen to paper. It’s completely up to the individual (or couple) as well as how much he/she/they want to open up to get the home.
A buyers’ broker should never write or even revise a letter. It would put a real estate professional in an unprofessional position. A broker can – or should – return a letter to buyers if its contents can hurt their chances of winning the offer.
In a letter, buyers should avoid discussing religion, parts of the home they dislike or plans to change the property if they were to win the offer. These topics could turn a perfectly worded message into sudden rejection. In addition, avoid sharing information that could damage the leverage a buyer may need in a counteroffer. That could include mentioning details about timelines, bottom lines and waiving contingencies.
A love letter can be a smart and effective form of communication for buyers. If considering using one as part of the offer, buyers should seek legal counsel or contact the Tacoma-based Fair Housing Center of Washington (888-766-8800 or www.fhcwashington.org) for unbiased advice.