02/15/2023
Happy Valentine's Day! Let's discuss Buyer love letters π and their role in the real estate industry.
Buyer love letters have been used for a long time as a way to persuade Sellers to select the buyers contract during multiple offers. These letters provide buyers with the feeling that they've done everything they could to secure the house.
Although love letters are not a new concept, they have come under scrutiny in recent years, especially during 2020-2021, when buyers were doing everything possible to get their offers accepted. While love letters might not pose any risks for buyers, they can put sellers at risk of violating fair housing laws if they unknowingly accept or reject an offer based on information covered by the Fair Housing Act.
If a love letter reveals a buyer's protected class information, such as their race, color, religion, familial status, or national origin, and the seller selects the offer based on that information, it could put the seller at risk of violating fair housing laws.
Even if the seller doesn't use the information contained in a love letter to accept an offer, the existence of the letter could still put the seller at risk. To avoid this risk, some sellers may not accept love letters altogether.
Sellers, if you plan to accept love letters, ensure that 1) you only accept offers based on price and terms, and 2) your agent documents all offers received and the reasons for accepting an offer.
Buyers, if you write a letter, make sure the seller accepts them and keep the letter specific to the characteristics of the house, such as why you love the home, instead of providing personal information. You should also refrain from including photos or videos.
Do love letters work? In a few cases, probably but in most, no. They really donβt have a significant impact on the seller's decision. Either sellers donβt accept them or they accepted the offer regardless of the letter π€·πΌββοΈ.
Buyers should focus on making a competitive offer instead of relying on a love letter to persuade the seller to select their contract.