Many buyers have put pen to paper expressing their desire of owning a certain property. These notes or letters are attached to their offer and are commonly known as “love letters”. These letters are used by buyers to introduce themselves to the home seller to make an emotional appeal. Some buyers believe these letters can provide a competitive edge.
Recently these types of letters have come under scrutiny for possibly enabling discrimination. Many in the Real Estate industry have concerns that a seller could violate the federal Fair Housing Act by choosing a buyer based on a protected class.
The National Association of Realtors put out guidance in October recommending that its members not draft, read or deliver love letters written or received by clients.
Some agents see these so-called “love letters” as a way to sweeten the deal by making sellers aware of the real people behind the offer. My advice is if an agent advises you to make a heartfelt letter. Take a deep breath and tell them no thanks!
I have been on both ends of the spectrum. Working with buyers who wanted to include a love letter and working with sellers who receive a love letter. I always advice buyers not to include love letters. The reason is when I have worked with sellers and they receive these letters, they may say well they look like a nice family. But it always comes down to a couple questions? How much are they offering, are there any contingencies? I hate to say it, but it boils down to money. Plus, you don’t want your seller running the risk of violating the federal fair housing act. So, I advise sellers to not allow the letters to carry to much weight.
Real estate love letters have another issue that could throw a wrench in the works. You never really know if the person who gets your love letter will feel the same way!
By R. Jones
